Posted on

Intuit acquires Credit Karma for $7.1B

Intuit (NASDAQ:INTU) +2.9% will acquire Credit Karma for $7.1B in cash and stock, which includes $1B of equity awards that will be expensed over up to three years.

The company says Credit Karma’s CY19 unaudited revenue was nearly $1B, up 20% Y/Y.

The purchase price will include equal parts of cash and stock with Intuit shares valued at $299.73/share.

Intuit expects the transaction to be neutral to accretive to non-GAAP EPS in the first full fiscal year after the transaction closes.

Intuit also reports Q3 results that beat EPS estimates and met on revenue. The mixed Q3 guidance sees revenue growth of 10-11% to $3.6-3.63B (consensus: $3.59B) and EPS of $5.90-5.95 (consensus: $6.18).

The company reaffirms the FY20 outlook with $7.44-7.54B (consensus: $7.53B) in revenue and $7.50-7.60 EPS (consensus: $7.53).

Press release.

Source: M A News on Seeking Alpha