Tech

Buying Mailchimp for $ 12 Billion Soars Intuit’s Share Price

The stake in TurboTax developer Intuit rose Tuesday morning after revealing that it had acquired email marketing firm Mailchimp for a whopping $ 12 billion.

Intuit said the company’s largest cash and equity transaction in history will help sell additional services to small businesses that are already using the company’s TurboTax and QuickBooks software.

Atlanta-based Mailchimp has now helped pioneers in the ubiquitous email marketing industry, making external investments, unlike almost every other tech company with a multi-billion dollar valuation since its inception in 2001. It is not. The $ 12 billion price tag is even more noteworthy. ..

Intuit, which has a market capitalization of about $ 152 billion, said in a late Monday announcement that the deal would “become a center of growth for small businesses” and “confuse the mid-market for small businesses.”

JPMorgan Chase analyst Sterling Oti said in a memo Obtained by MarketWatch The large amount of money Intuit spends on Mailchimp may be “frowning”, but it shows that the company is “not prowling” when it comes to growth.

Backing a pioneer in the ubiquitous email marketing industry, Mailchimp hasn’t invested outside since its inception in 2001.
Tiffany Hagler-Geared / Bloomberg via Getty Images

“We are confident that this is a good strategic move to bring profitable assets that grow faster than the corporate average and further strengthen Intuit’s entire portfolio of small business products,” Auty added. I did.

Investors seem to agree with Auty’s analysis, with Intuit shares rising 2% to $ 586.56 in early Tuesday trading, outpacing a 0.25% rise in the broader market.

The transaction is expected to close by the end of the second quarter of fiscal year 2022, according to Intuit.

Intuit logo
After the purchase, Intuit shares rose.
Alami Stock Photo

Sasan Goodarzi, CEO of Intuit, said: “Adding Mailchimp furthers our vision of providing an end-to-end customer growth platform, helping customers grow and run their businesses, and gaining the power of data to prosper. . “

Intuit also owns the personal finance apps Mint and Credit Karma.

Sasan Goodarzi, CEO of Intuit, said:
Sasan Goodarzi, CEO of Intuit, said:
David Paul Morris / Bloomberg via Getty Images

Buying Mailchimp for $ 12 Billion Soars Intuit’s Share Price

Source link Buying Mailchimp for $ 12 Billion Soars Intuit’s Share Price

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