November 30, 2020

TurboTax maker Intuit near deal to buy Credit Karma for $7 billion, WSJ reports


TurboTax maker Inuit Inc. is close to an agreement to buy personal-finance technology portal Credit Karma Inc. for roughly $7 billion, the Wall Street Journal reported, citing anonymous sources.

The deal, which will be in cash and stock, would push Intuit further into the growing online consumer finance sector. The company is expected to announce the agreement on Monday, people familiar with the matter told the newspaper.

The acquisition would be Intuit’s largest in its 37-year history. Intuit shares have risen nearly 14% since the beginning of the year, and the company is expected to report second-quarter earnings on Monday.

Credit Karma, a startup headquartered in San Francisco, was valued at about $4 billion in a private share sale roughly two years ago. The platform offers users free access to credit scores and reports, and gives personalized loan and credit card recommendations based on the users’ credit history.

Under the agreement, Credit Karma would function as a stand-alone business with its chief executive, Kenneth Lin, staying in charge, one person told The Journal.

Read the full report here



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