Mailchimp CRM Acquired By Intuit Inc↘
Have you heard? Intuit Inc, the creator of the TurboTax and QuickBooks software has allegedly agreed to purchase the privately held email marketing firm - Mailchimp CRM software for $12 billion in cash and stock, which will unite the two service providers for small businesses to utilise.
The deal between the Mailchimp CRM and Intuit Inc was initially announced in a statement earlier this week which confirmed the details from the already published Bloomberg News report.
Intuit Inc and Mailchimp CRM
Intuit was founded in 1983 by Scott Cook and Tom Proulx and became public as a company in 1993. The TurboTax product has become synonymous with online tax filing, but small-business services account for a larger part of Intuit’s business without suffering the same seasonal swings.
Mailchimp is an Atlanta-based company with origins that trace back to a web design agency called ‘Rocket Science Group’. This business was founded back in 2001 by Ben Chestnut and Dan Kurzius.
The Acquisition of Mailchimp CRM for Intuit Inc
In January 2021, Mailchimp acquired the SMS marketing platform Chatitive Inc, which allows for two-way personalised communication to take place between businesses and their customers.
This new deal represents a windfall for Chestnut and Kurzius, as the company has no outside funding or venture capital backing, according to PitchBook - the data provider.
This latest acquisition for Intuit Inc is expected to close before the end of Intuit’s fiscal, during the second quarter of next year. This will only add to adjusted earnings per share for the full fiscal year, which ends next July in 2022.
Intuit Inc has announced that it plans to finance the cash portion of the deal through cash in hand and new debt of approximately $4.5 billion to $5 billion.
It is thought that Intuit shares fell 1.8% to $557.42 in New York before the announcement was made, however, the stock has gained 47% this year, giving the company a market value of $152.2 billion US dollars.
Morgan Stanley & Co. acted as the financial adviser to Intuit Inc in regards to the details of this deal, while Latham & Watkins LLP became the legal adviser. During the deal’s progress, Mailchimp was advised by Qatalyst Partners and King & Spalding LLP.
The Benefits of Mailchimp Acquisition for Intuit Inc
The hope for this acquisition is that it will bolster Intuit’s offerings for ecommerce businesses looking to reach and serve their customers online.
Intuit Inc has offered QuickBooks accounting software to clients for decades, supplementing this offering with services such as Credit Karma, which was acquired by the company back in 2020.
With the addition of Mailchimp in Intuit’s ranks, the company is eager to build upon a small-business recovery strategy that has already helped to fuel sales of QuickBooks as well as other products and services.
As customers see operations getting back on track after the long-term effects of the pandemic, many businesses are beginning to digitise their books for the first time, which has meant that Intuit Inc has been able to capitalise itself in the process.
The Released Statement of Mailchimp’s Chief Executive Officer
The Mailchimp CRM is focused on digital marketing services including; social advertising, shoppable links and automation products.
The company’s Chief Executive Officer - Sasan Goodarzi had a few words to share on the firm’s acquisition. In a statement, she said:
- “Expanding our platform to be at the centre of small and mid-market business growth helps them overcome their most important financial challenges.”
The Largest Deal To Date
According to data compiled by Bloomberg, it is thought that the planned transaction is the company’s largest deal to date. It has been suggested that Intuit Inx paid $7.1 billion back in 2020 for Credit Karma - the personal finance website.
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