Intuit to buy personal finances rival Credit Karma

[SAN FRANCISCO] Intuit on Monday announced a deal to buy personal finances rival Credit Karma for US$7 billion in cash and stock.

Intuit, the maker of TurboTax, QuickBooks and Mint, said it planned to work with Credit Karma to create a digital aide to help people better manage their money and meet financial goals.

Credit Karma, which has its headquarters in San Francisco, was founded in 2007 and based on the belief that people should have free access to their credit and financial data, according to its website.

The startup boasts more than 100 million members in North America and Britain, including nearly half of all US millennials. It expanded from providing free credit scores to services such as identity monitoring, loan shopping, tax filing, and online savings accounts.

"We started Credit Karma with a goal to build a trusted destination for all consumers, to make financial progress regardless of where they are in life," said co-founder and chief executive Kenneth Lin.

"We saw the opportunity to enrich people's financial lives through transparency, simplicity and certainty."

Credit Karma had almost a billion dollars in unaudited revenue last year, according to Intuit.

The planned Intuit and Credit Karma platform will helping people find financial products, insights and advice, according to the companies.

The purchase price for Credit Karma will be payable in equal portions of cash and Intuit common stock, terms of the deal indicated.

Intuit said that its financial management platform serves about 50 million customers worldwide.

AFP