Wed, 20 Oct 2021

Intuit buys email, database company Mailchimp for $12 billion

Robert Besser
17 Sep 2021, 21:55 GMT+10

MOUNTAIN VIEW, California: California-based Intuit, known for its small-business accounting and DIY tax-filing software, including TurboTax and QuickBooks, announced that it will purchase digital marketing company Mailchimp for some $12 billion in a cash-and-stock deal.

The company said the purchase, the largest in its history, is expected to be completed by the second quarter of 2022, and will be financed with cash and new debt worth between $4.5 to $5.0 billion.

It also bought personal finance portal Credit Karma for just over $7 billion in 2020.

The deal will enable Intuit to integrate spending insights into Quickbooks.

"There is incredible power in combining customer data and purchasing data, " said Intuit Chief Executive Sasan Goodarzi.

According to its website, Mailchimp was founded in 2001 as a web design agency, known as the Rocket Science Group, co-founded by Ben Chestnut and Dan Kurzius, who began focusing on major corporate clients.

Mailchimp reported revenues of $800 million in 2020, a 20 percent year-over-year increase, with half being generated outside the U.S. After the purchase is completed, the company will continue to be based in Atlanta, Georgia, and operate under its current name.

Intuit, which was founded in 1983 by Scott Cook and Tom Proulx, went public in 1993. It now has more than 10,000 employees working in 20 offices in nine countries.

The two companies began discussing a potential partnership over one year ago, which later evolved into talks about an acquisition that was reported by Bloomberg in September.

During the negotiations, Intuit hired Morgan Stanley as its financial adviser and Latham & Watkins as its legal adviser, while Mailchimp was advised by Qatalyst Partners and King & Spalding LLP.

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