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Intuit Reportedly Eying Another Acquisition After Credit Karma

By Rich Duprey - Mar 10, 2020 at 11:11AM

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Tax prep giant may be wanting to make a bigger splash in personal finance.

Weeks after shelling out $7 billion to acquire Credit Karma, financial software giant Intuit (INTU -3.27%) might be in the market for yet another acquisition. Intuit is showing interest in fintech business Finicity, a data aggregator whose API allows two applications to talk to each other, according to a report Tuesday from Barron's.

Also reportedly under consideration are Credit Sesame, a business similar to Credit Karma, and personal finance website NerdWallet.

Magnifying glass examining financial reports

Image source: Getty Images.

Fintech under scrutiny

Barron's reports the online tax prep leader said people familiar with the situation were "looking hard" at Finicity, but the other two companies were a possibility as well, though one private equity firm doubted Credit Sesame was a target because it offered little differentiation from Credit Karma. "Why would they want two?" he was quoted as saying.

The credit score portal raised $43 million last August and is reportedly on track to go public. Like Credit Karma, it's a profitable business and could be worth upwards of $750 million.

Intuit has been expanding further into the personal finance business as a means of jump-starting growth. Finicity is similar to Visa's Plaid that it acquired in January for $5.3 billion and analysts believe it could fetch as much as $2 billion. Its APIs work with companies like Experian to help digitize the loan application process, particularly for consumers with little to no credit history.

NerdWallet provides information on lons, credit cards, mortgages, and savings accounts. No estimate on what price someone might be willing to pay for the company was provided.

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