Reportedly, Intuit Inc. is close to a deal for buying Credit Karma Inc., a personal finance portal. The procurement could cost $7 billion in both stocks as well as cash. According to the sources familiar with the matter, the company is purchasing the portal in an effort to push the secretarial-software giant subsequently into consumer financing. In other words, the deal will drive Intuit Inc. further into the rapidly expanding sector of consumer finance. Sources said the company could announce the settlement as early as Monday. Well, it will be the largest acquisition in the more than a three-decade history of Intuit. Since the beginning of the current year, its shares have risen by around 14%. Even more, the company is on edge to report its Q2 or second-quarter earnings.
On the other hand, Credit Karma is a San Francisco-based startup having a market cap of around $4 billion. Through the platform, users can freely access reports ad credit scores. Even more, it offers credit cards and personal loan suggestions, depending on the credit history of a user. Even more, customers get offers from other companies for loans and credit cards. Eventually, Credit Karma makes a profit when customers use those services. After the procurement deal, Credit Karma would work as an independent business with its CEO Kenneth Lin. By adding the buzzy new business, to its persistent one could offer Intuit a firm foothold in the booming industry of the online private economy.
Intuits already offers TurboTax, an online software that millions of users use for tax filing. Apart from this, it provides Quickbooks, a bookkeeping software, and Mint, a platform that assists users in online-budgeting. The deal would excel at a rapid growth for Credit Karma, which is backed by financiers like Silver Lake, a risk capital firm. At one point, Credit Karma has had dreamed of going public at least by the end of 2019. But the IPO market has observed more doubtful after the unsatisfactory entrances of some startups like Uber.