Intuit and Credit Karma Receive Clearance from Department of Justice for Acquisition of Credit Karma
Acquisition Paves the Way to Help Over 100 Million Consumers Save, Pay Down Debt and Get Faster Access to Money
Intuit, proud maker of TurboTax, QuickBooks, and Mint, with 57 million customers, and Credit Karma, the consumer technology platform with more than 110 million members in the U.S., Canada and the U.K., today announced that they have entered into a consent decree with the U.S. Department of Justice (DOJ), an important step in completing their previously announced merger. The companies also announced that they have entered into an Assurance of Discontinuance with the New York State Attorney General that, along with the DOJ action, moves Intuit’s acquisition of Credit Karma one step closer to closing, subject to the satisfaction of customary closing conditions.
Intuit and Credit Karma also announced Credit Karma’s agreement with Square (NYSE: SQ), pursuant to which Credit Karma will divest its Credit Karma Tax business to Square. The completion of the transaction with Square is contingent upon the successful closing of Intuit’s acquisition of Credit Karma, among other customary closing conditions. As part of the divestiture transaction, Intuit and Credit Karma have made certain commitments to Square, including the provision of certain transition services to help ensure a successful transition of the business.
“We are very excited to reach this important milestone today. This brings us one step closer to transforming personal finance by making it simpler for consumers to find the right financial products, put more money in their pockets, and provide financial expertise and advice,” said Sasan Goodarzi, CEO of Intuit. “We are pleased to have cleared this necessary regulatory review with DOJ and appreciate their careful consideration of this transaction. Consumers will continue to benefit from the Credit Karma Tax product as part of Square.”
The combination of Intuit’s and Credit Karma’s trusted brands will support customers during a time in which the challenges of a global pandemic have made consumers’ personal finance needs even more critical. Currently, 62% of consumers are living paycheck-to-paycheck, 75% of Americans have concerns about their ability to pay bills and loans, 33% of Americans have lost income during the pandemic while household debt in the U.S. has reached $14.3 trillion. These challenges add even greater urgency to Intuit’s and Credit Karma’s shared goal to help customers improve their financial lives.
“Today is an exciting milestone for Intuit and Credit Karma. Together with our trusted brands, customer scale, as well as our data and AI platforms, we will achieve more than either company could on its own,” said Kenneth Lin, Founder and CEO of Credit Karma. “We are pleased to have accomplished our goal of addressing any potential regulatory hurdle and proud we’ve found a partner for the Credit Karma Tax business.”