On Monday, Intuit – the business behind TurboTax, Mint, and QuickBooks has announced strategies to get credit monitoring startup Credit Karma for $7.1 billion.
It” s the greatest handle Intuit” s 37-year history and comes simply one year after Sasan Goodarzi took the CEO reins at Intuit. And the acquisition is being announced at a time of heightened regulative scrutiny over antitrust and personal privacy problems.
However Goodarzi and Credit Karma CEO Kenneth Lin are betting the offer, which they anticipate to close in the 2nd half of the year, will offer more options to clients and accelerate development for both companies.
In an interview with Organisation Insider on Monday, the 2 executives talked about the technique behind the combination.
Intuit has been working to make itself into a platform that works like a digital individual monetary assistant for users and it wishes to do that by including expert system into its items in order to offer users recommendations about their particular requirements. Credit Karma will help make that a truth faster, Goodarzi informed Business Insider.
“This really gives us the opportunity together to create a consumer finance platform that truly acts like a financial assistant in the pockets of consumers – the capability that Ken and his team have created at Credit Karma really helps to accelerate our speed to market,” he said.
Credit Karma was built around the concept of utilizing customers’ ‘ monetary data to help direct them to the tools that would be most useful to them. Goodarzi said that ability is key to Intuit” s overall goal. In order to get there they require data about clients so they can develop artificial intelligence that directs individuals to the tools they require, he said.
While some are questioning if this suggests Intuit” s M&A technique will end up being more aggressive, Goodarzi stated that” s not necessarily the case. This has less to do with desiring to do more acquisitions, and more about ensuring the business is working towards its objective, he said.
“We’re not after mega deals. We’re after really accelerating, solving our customer problems and time to market. And it just so happens that Credit Karma has created something that very few have and together we can accelerate the benefits for customers,” Goodarzi said.
“When you look at the data assets that Intuit has, the capabilities around fraud, the culture and the alignment of mission that we had, it made so much more sense to work through that relationship than the fundraising mechanism that is the IPO market,” Lin said.
Once the deal closes, Credit Karma will remain a separate entity within Intuit and Lin will continue running the company on his own, while reporting directly to Goodarzi.