Please ensure Javascript is enabled for purposes of website accessibility

Intuit Reportedly Ready to Buy Credit Karma for $7 Billion

By Rich Duprey – Updated Feb 24, 2020 at 10:36AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The tax-prep giant is looking to expand its position in the personal finance industry.

Online tax prep specialist Intuit (INTU 3.97%) is reportedly ready to shell out $7 billion for Credit Karma, a provider of credit history data and personal finance services.

The Wall Street Journal reported over the weekend the cash and stock deal could happen as soon as Monday. It would be the largest acquisition in Intuit's history, and would provide the owner of TurboTax and QuickBooks a new avenue of growth in personal finance.

IRS tax forms

Image source: Getty Images.

Not a taxing decision to make

Although Credit Karma is best known for its credit score and credit monitoring services, the privately held company also offers access to tax preparation and filing services and connects customers to credit cards and loans based on their credit history. When customers use those services, Credit Karma receives payment.

It had planned to go public last year, but delayed the offering as the IPO market faltered following poor results from numerous tech-based businesses such as Peloton and Uber.

Unlike many of those companies, however, Credit Karma is reportedly profitable. It added some 75 million users over the past five years, and one out of every two millennials has signed up for the service. It was viewed as a top IPO candidate for 2020.

Intuit has a toehold in the personal finance market outside of its tax prep services and accounting software through Mint, an online personal budgeting service. Adding Credit Karma would give it a much wider footprint in that arena.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Intuit and Peloton Interactive. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Intuit Inc. Stock Quote
Intuit Inc.
$412.56 (3.97%) $15.76

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.