Intuit (NASDAQ:INTU), the creator of Turbo Tax, Quickbooks and Mint as well as an aspiring Fintech, is expected to pony up $7 billion to purchase Credit Karma, according to a report by WSJ.com.
Intuit generates about $7 billion a year in topline revenue. During a recent investor day, Intuit highlighted five areas where it plans to focus to accelerate growth. These include:
- Revolutionize speed to benefit
- Connect people to experts
- Unlock smart money decisions
- Be the center of small business growth
- Disrupt the small business mid-market
Credit Karma is a “free” service that seeks to simplify financial services for the masses. It regularly posts comparisons of credit and loan offerings. The company earns revenue when someone utilizes its services to apply for a loan or credit card. In 2016, it reported over 60 million users.
Credit Karma clearly aligns with the connecting people to experts and unlocking smart money decisions strategy that Intuit seeks to accomplish. Intuit is also pursuing an “AI driven expert system.” This is an area where Credit Karma could easily help out.
Bloomberg reported that the acquisition will see Credit Karma operate as a standalone unit if discussions remain on track.
Intuit will announce Q4 earnings numbers tomorrow (February 24, 2020), so expect the news to be confirmed in a release.
Intuit has been actively engaged in a lobbying push by big tech interested in pursuing Fintech. Financial Innovation Now represents several very big tech firms, like Apple and Google, seeking to pave the way for more integrated financial services offerings. Intuit is a founding member of this group.