Money

Intuition to buy Mailchimp for $ 12 billion in cash and stock

Video Source: YouTube, Bloomberg Markets and Finance

Intuit Inc (Nasdaq: INTU). Presentation On Monday, it will acquire private digital marketing firm Mailchimp for $ 12 billion in cash and equity to consolidate two service providers for small businesses.

Intuit, best known for its popular financial software TurboTax and QuickBooks, said the acquisition will enhance services for businesses looking for ways to reach and serve their customers online.

Announcement confirmed Bloomberg News Last month, Mailchimp, a company with a 20-year history of providing email campaigns, social advertising, shoppable links, automation products, and more, reported that it was conducting a survey. Possibility of sale All or part of itself.

In a statement, Mailchimp co-founder and CEO Ben Chestnut said: Working with Intuit, we leverage Intuit’s AI-driven expert platform to bring even better products and services to SMEs and take them to the next level. “

“This is an exciting new chapter for Mailchimp, more than 1,200 dedicated employees, and customers,” Chestnut added.

luck Mailchimp says it has never received external funding or venture capital support since its inception in 2001, unlike many other tech startups.

Based in Atlanta, the company currently has 13 million users, from entrepreneurs to small businesses to Fortune 100 companies.

Mailchimp and Intuit are planning to work together to help businesses market online, manage customer relationships and access capital, they said.

The transaction will close before the end of Intuit’s second quarter, which ends in January 2022, and will be added to full-year adjusted earnings per share, which ends in July 2022.

Intuit said it plans to raise funds for the cash portion of the transaction through cash on hand and new debt of approximately $ 4.5 billion to $ 5 billion.

This is Intuit’s largest deal to date, surpassing the $ 7.1 billion the company paid last year to acquire a FinTech startup. Credit karma Ltd

Intuit is trying to take advantage of the economic recovery as follows: Small and medium-sized enterprises After a pandemic-related turmoil, it returns to orbit.

“By expanding the platform to the center of growth for small businesses, we can overcome the most important financial challenges,” said Sasan Goodarzi, CEO of Intuit.

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“Adding Mailchimp furthers our vision of providing an end-to-end customer growth platform, helping customers grow and run their businesses, and gaining the power of data to prosper. “He said.

Intuit was advised by Morgan Stanley and Mailchimp was advised by Qatalyst Partners.

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sauce: Equity news



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