Intuit to buy Mailchimp for about $12 billion in cash and stock

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on Sep 14, 2021
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  • The deal marks the largest-ever acquisition for Intuit Inc.
  • Transaction is expected to complete next year in fiscal Q2.
  • Shares of Intuit Inc are up about 2.0% on Tuesday morning.

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Intuit Inc (NASDAQ: INTU) said late on Monday it will buy Mailchimp for roughly $12 billion in cash and stock. The financial software company will finance its largest-ever acquisition through $4.5 billion to $5.0 billion of new debt and cash on hand.

“The acquisition will help small and mid-market businesses to combine their customer data from Mailchimp and QuickBooks’ purchase data to get actionable insights they need to grow and run their businesses with confidence,” Intuit said in a press release.

The deal is expected to close in Q2 of fiscal 2022

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Last year, Mailchimp noted a 20% year-over-year growth in its revenue to $800 million, with about 50% of it coming from outside the U.S. The acquisition is likely to boost Intuit’s full fiscal 2022 adjusted earnings.  

After completion of the transaction expected next year in the fiscal second quarter, Mailchimp will keep its name and continue to operate from its headquarters in Atlanta, Georgia. According to Mailchimp CEO Ben Chestnut:

“By joining forces with Intuit, we’ll take our offerings to the next level, leveraging Intuit’s AI-driven expert platform to deliver even better products and services to small businesses.”

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Intuit picked Morgan Stanley as its financial advisor for the acquisition and Latham & Watkins as its legal advisor. Qatalyst Partners and King & Spalding LLP are serving the roles for Mailchimp.

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The announcement comes almost a year after Intuit bought Credit Karma (personal finance portal) for a little over $7.0 billion.

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Intuit shares are about 2.0% up on Tuesday morning. The $154 billion company now has a price to earnings ratio of 74.91.

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