Intuit to buy Mailchimp for about $12 billion in cash and stock | Invezz
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Sep 14, 2021
The deal marks the largest-ever acquisition for Intuit Inc.
Transaction is expected to complete next year in fiscal Q2.
Shares of Intuit Inc are up about 2.0% on Tuesday morning.
Intuit Inc (NASDAQ: INTU) said late on Monday it will buy Mailchimp for roughly $12 billion in cash and stock. The financial software company will finance its largest-ever acquisition through $4.5 billion to $5.0 billion of new debt and cash on hand.
“The acquisition will help small and mid-market businesses to combine their customer data from Mailchimp and QuickBooks’ purchase data to get actionable insights they need to grow and run their businesses with confidence,” Intuit said in a press release.
The deal is expected to close in Q2 of fiscal 2022
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Last year, Mailchimp noted a 20% year-over-year growth in its revenue to $800 million, with about 50% of it coming from outside the U.S. The acquisition is likely to boost Intuit’s full fiscal 2022 adjusted earnings.
After completion of the transaction expected next year in the fiscal second quarter, Mailchimp will keep its name and continue to operate from its headquarters in Atlanta, Georgia. According to Mailchimp CEO Ben Chestnut:
“By joining forces with Intuit, we’ll take our offerings to the next level, leveraging Intuit’s AI-driven expert platform to deliver even better products and services to small businesses.”
Legal and financial advisors for both companies
Intuit picked Morgan Stanley as its financial advisor for the acquisition and Latham & Watkins as its legal advisor. Qatalyst Partners and King & Spalding LLP are serving the roles for Mailchimp.
The announcement comes almost a year after Intuit bought Credit Karma (personal finance portal) for a little over $7.0 billion.
Intuit shares are about 2.0% up on Tuesday morning. The $154 billion company now has a price to earnings ratio of 74.91.
67% of retail CFD accounts lose money
Stocks & Shares