TurboTax owner Intuit announced Monday that it plans to acquire consumer finance company Credit Karma in a $7.1 billion deal.
The combination brings together two well-known personal finance companies. Intuit is the maker of Mint and TurboTax, the online tax filing service used by millions of Americans to file taxes.
Credit Karma, which has more than 100 million members in the U.S., Canada and U.K., makes money through credit cards and loan referral commissions. It generated $1 billion in revenue in 2019.
“By joining forces with Credit Karma, we can create a personalized financial assistant that will help consumers find the right financial products, put more money in their pockets and provide insights and advice,”Sasan Goodarzi, CEO of Intuit, said in a statement.
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The deal confirms an earlier Wall Street Journal report.
The companies said they expect the deal to close in the second half of 2020, pending regulatory approval.
If the cash and stock deal doesn’t fall through, Intuit and Credit Karma would be the latest financial technology companies to join forces this year.
Morgan Stanley announced plans to buy E*Trade last week for about $13 billion. The deal gives the big bank access to brokerage customers and employees with company stock.
Visa announced plans in January to purchase the fintech company Plaid for $5.3 billion, giving the payment processing giant access to other types of money transfer systems.
Contributing: Dalvin Brown