Intuit, a US-based financial technology company, announced on Monday that it’s acquiring Mailchimp, an e-mail marketing company. According to the press release, the company is planning to acquire Mailchimp for USD 12 Billion, in cash and stock. Intuit’s move to purchase the company is to revamp itself as an AI-driven platform.
Intuit is known for its service offerings such as TurboTax, Mint, Credit Karma, and Quickbooks. Both the companies look forward to providing growth platforms to small and medium businesses. These platforms are expected to help businesses manage customer relationships, provide business analytics, optimize work and cash flow, and be compliant with the regulations. “We’re focused on powering prosperity around the world for consumers and small businesses,” said Sasan Goodarzi, CEO of Intuit.
If the deal completes, it will mark Intuit’s biggest acquisition to date. Moreover, it is approximately 10% of its market capitalization. Last year, the company acquired Credit Karma for USD 8 Billion. It is a consumer technology company that helps consumers to make financial decisions easier. On the latest acquisition, Goodarzi said that “adding Mailchimp furthers our vision to provide an end-to-end customer growth platform to help our customers grow and run their businesses, putting the power of data in their hands to thrive.”
Mailchimp was found in Atlanta in 2001 and since then it has been providing different customer engagement automation solutions. It has around 13 Million users and approximately 800,000 paid customers across the globe. The company fosters 2.2 Million daily AI-driven predictions. “Over the past two decades, we’ve vastly expanded and evolved Mailchimp’s platform to help millions of small businesses around the world start and grow,” said CEO and co-founder, Ben Chestnut, in a statement.
He added that with “Intuit, we’ve found a shared passion for empowering small businesses. 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. This is an exciting new chapter for Mailchimp, our 1,200+ dedicated employees, and customers.” Mailchimp is a bootstrapped company that has reached new heights in a competitive market. It reported USD 800 Million in 2020, a 20% year-over-year (YoY) growth.
Upon the news of the acquisition, Intuit’s share was up by 0.15% in after-hours trading. The company recently posted its fourth-quarter earnings. It reported a revenue of USD 9.6 Billion, a significant increase of 25% YoY. Its platform Credit Karma generated USD 405 Million in Q4 2021. Intuit expects its revenue to grow by 36-38% for Q1 2022. Its revenue was propelled by Quickbooks Online payments. Furthermore, its Small Business and Self-Employed Group business segment accounted for USD 1.3 Billion in revenue, up by 19% since the last quarter.
Post the deal completion, it is expected that its afore-mentioned segment grows at a more rapid rate. “Together, Mailchimp and QuickBooks will become a powerful engine for small and mid-market business customers to get, engage and retain their customers, run their businesses, optimize cash flow and remain compliant,” said Executive Vice President and General Manager of Intuit’s Small Business and Self-Employed Group, Alex Chriss, said in a statement.