Financial software company Intuit has agreed to acquire consumer technology platform Credit Karma for $7.1 billion in cash and stock.
Founded in 2007, Credit Karma issue customers credit cards and online loans depending on their credit scores. The firm was expected to conduct an initial public offering but opted for a sale due to diminishing confidence among investors following the failures of Uber’s IPO and WeWork’s planned offering, according to a report from the New York Times.
During 2019, according to Intuit’s official announcement, Credit Karma experienced 20% in revenue growth, seeing almost $1 billion in unaudited revenue. Intuit CEO Sasan Goodarzi said he hopes the acquisition would help the company better provide service to consumers who don’t fully understand their finances.
“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, enabling them to buy the home they’ve always dreamed about, pay for education and take the vacation they’ve always wanted,” Goodarzi remarked in a statement.