Image credits: MailChimp
Intuit, a California-based company known for business and financial management solutions for SMBs, announced on Tuesday that it is acquiring digital marketing company Mailchimp for $12B (approx €10.1B) in a cash-and-stock deal.
This announcement comes around nine months after Intuit acquired Credit Karma for $8.1B (approx €6.8B). The Mailchimp deal, expected to close by Q2, 2022, is Intuit’s biggest acquisition to date. It will be financed through cash on hand and new debt of approximately $4.5B to $5B (approx €3.8B to €4.2B), says Intuit.
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Once the transaction is complete, Intuit will issue $200M (approx €169M) of restricted stock units to Mailchimp employees. Out of this, $140M (approx €118.3M) will be expensed over four years, and $60M (approx €50.7M) will be expensed over six months.
Why this acquisition?
The acquisition of Mailchimp will enable Intuit to become the centre of small business growth and disrupt small business mid-market. Intuit plans to leverage Mailchimp to build an end-to-end customer growth platform for small and mid-market businesses.
“We’re focused on powering prosperity around the world for consumers and small businesses. Together, Mailchimp and QuickBooks will help solve small and mid-market businesses’ biggest barriers to growth, getting and retaining customers,” says Sasan Goodarzi, CEO of Intuit.
He continues, “Expanding our platform to be at the centre of small and mid-market business growth helps them overcome their most important financial challenges. 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.”
Intuit’s platform will allow businesses to go online, market, manage customer relationships, benefit from insights and analytics, get paid, access capital, pay employees, and optimise cash flow. Further, Mailchimp and QuickBooks will integrate data to target customers better.
“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,” says Ben Chestnut, CEO and Co-founder of Mailchimp.
He adds, “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.”
Intuit: What you need to know
Founded by Tom Proulx and Scott Cook in 1983, Intuit offers business and financial management solutions for SMBs, financial institutions, consumers, and accounting professionals.
The company’s product portfolio includes TurboTax, QuickBooks, Mint, and Credit Karma.
Intuit offers end-to-end solutions for online tax preparation, download products, mobile tax prep, mortgage interest and property tax, corporations tax, military tax, and more.
Last month, Intuit announced financial results for the fourth quarter and full fiscal year 2021, which ended July 31.
For the fourth quarter, the company reported total revenue of $2.6B (approx €2.1B), up 41 per cent from $1.8B (approx €1.52B) in the prior year. Small Business and Self-Employed Group revenue grew by 19 per cent to $1.3B (approx €1B), and Online Ecosystem revenue grew by 30 per cent.
For the full year, Intuit reported total revenue of $9.6B (approx €8.1B), up 25 per cent year-over-year. The Combined Platform Revenue, which includes QuickBooks Online, TurboTax Online, and Credit Karma, grew 39 per cent to $6.6B (approx €5.5B). Small Business and Self-Employed Group revenue grew 16 per cent, and Online Ecosystem revenue grew 26 per cent.
Mailchimp: What you need to know
Founded in 2001 by Ben Chestnut and Dan Kurzius, Mailchimp provides marketing automation for e-commerce businesses. The company’s platform is used to send marketing emails and automated messages, create targeted campaigns, facilitate reporting and analytics, and sell online.
Mailchimp has 13M users globally with 2.4M monthly active users and 800,000 paid customers.
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