Intuit Agreed to Acquire Mailchimp

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It’s a cash-and-stock deal that still needs regulatory approvals. 

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Intuit is the parent company of QuickBooks. Mailchimp is a provider of email marketing services. Together, these companies will help small businesses in managing customers and their books. 

How Much is the Deal? 

As mentioned, it’s a cash-and-stock deal amounting to $12 billion. The deal may help bolster Intuit’s offers for businesses that look for new ways to reach their customers online.

For decades, Intuit has been offering QuickBooks accounting software to businesses and individuals. The company supplemented its offers with Credit Karma and other services. 

Incorporating Mailchimp into Intuit’s services will help fuel sales of QuickBooks and its other products. 

“We’re focused on powering prosperity around the world for consumers and small businesses. Together, Mailchimp and QuickBooks will help solve small and mid-market businesses’ biggest barriers to growth, getting and retaining customers. Expanding our platform to be at the center of small and mid-market business growth helps them overcome their most important financial challenges. Adding Mailchimp furthers our vision to provide an end-to-end customer growth platform to help our customers grow and run their businesses, putting the power of data in their hands to thrive.” — Intuit

After COVID-19 disruptions, customers are now opening their doors and they’re back on track. Most of them are now digitizing their books after learning how important they are. Intuit has capitalized on that. 

The acquisition deal is the largest made by Intuit. But it is a notable expansion into its management. The real magic in managing customers is the power of the data. By integrating the platforms, small business owners will know who they are marketing their services to, what they bought, and when they purchased it. 

With the current pandemic, Intuit shares are increasing. Over the past year, it has risen to 75%. It now has a market capitalization of $152 billion. 

Mailchimp, on the other hand, has grown its marketing services for tracking customer engagement. Globally, it has 13 million users. 

Out of those millions, 800,000 of them are paid customers. And half of those paid customers are living outside the US. 

The deal involves $300 million in equity for Mailchimp’s employees. This will help with retention. Once that deal is closed, the company will give an additional $200 million in stock to the digital marketing platform’s employees. 

Intuit focused on small businesses during this pandemic. The company made $9.6 billion in revenue from small businesses and self-employed individuals. 

Indeed, the pandemic hurt small businesses. But it forced them to manage their finances online. Because of that, its sales increased to 16% compared to the year before. 

The company has been focusing on establishing its consumer-finance platform. In 2020, it acquired Credit Karma for $7.1 billion. It’s a credit-monitoring app. 

But the deal was heavily scrutinized by the regulatory board. As a result, Credit Karma sold its tax business just to get the approval of the federal government. 

The deal is said to be closed by the end of January. Since it’s a different market, the company doesn’t anticipate any huge challenges.


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Author: Jane Danes

Jane has a lifelong passion for writing. As a blogger, she loves writing breaking technology news and top headlines about gadgets, content marketing and online entrepreneurship and all things about social media. She also has a slight addiction to pizza and coffee.

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