Intuit Buys Credit Karma

Intuit buys Credit Karma.
   
Intuit buys Credit Karma for $7.1 billion.
   
Founded in 2007, Credit Karma has 100 million members in the United States, Canada, and the United Kingdom. Best known for helping people track and control their credit, members use the firm for everything finance. This includes identity monitoring, applying for credit cards, shopping for a car, home, or personal loan, filing taxes, and high-yield savings accounts. It’s a personal financial assistant providing insights into your money and helping you find the right products.
   
The deal unites two fintech leaders with a shared goal to help you manage debt, maximize savings, access better credit cards and loans, and put more money in your pocket. The background scenery is a United States household debt of $14.1 trillion. This includes $9.6 trillion mortgage debt, $1 trillion in credit cards, and $1.5 trillion in student loans.
   
Sasan Goodarzi of Intuit said: ‘Our mission is to power prosperity around the world with a bold goal of doubling the household savings rate for customers on our platform. We wake up every day trying to help consumers make ends meet. By joining forces with Credit Karma, we can create a personalized financial assistant that will help consumers find the right financial products, put more money in their pockets, and provide insights and advice, enabling them to buy the home they’ve always dreamed about, pay for education, and take the vacation they’ve always wanted.
   
There’s a lot of innovation and investment in fintech, but we don’t see anyone, with our collective capabilities, pursuing a personalized financial assistant to help consumers take control of their financial lives. Together with Ken and the Credit Karma team, we’re going to bring together consumers and financial institutions in innovative ways that lower costs for all those involved and level the playing field for consumers regardless of their economic status. We believe we can transform the personal finance industry and power the economy.’
   
Kenneth Lin of Credit Karma said: ‘We started Credit Karma with a goal to build a trusted destination for all consumers, to make financial progress regardless of where they are in life. We saw the opportunity to enrich people’s financial lives through transparency, simplicity, and certainty. We could not have picked a better partner than Sasan and the Intuit team to speed up our mission to champion financial progress for our members. Together, the complementary strengths of our combined companies will help us to invest in innovation, build faster, and deliver products our consumers expect and deserve.’
   
Qatalyst Partners served as financial advisor to Intuit. Latham & Watkins served as legal advisor.
   
Goldman Sachs served as financial advisor to Credit Karma. Skadden, Arps, Slate, Meagher & Flom, and Wilson Sonsini Goodrich & Rosati served as legal advisors.