FILE PHOTO: An Intuit office is shown in San Diego, California August 21, 2015. REUTERS/Mike Blake
September 13, 2021
(Reuters) -Intuit Inc, known for its small-business accounting and DIY tax-filing softwares, said on Monday it would buy email marketing company Mailchimp for about $12 billion in a cash-and-stock deal.
The deal, expected to close by the second quarter of fiscal 2022, will be financed through cash on hand and new debt of about $4.5 billion to $5.0 billion, Intuit said.
The deal for Atlanta-based Mailchimp, which operates a marketing platform for small and mid-market businesses, will help Intuit expand its product base for small businesses.
California-based Intuit’s products include TurboTax, a software that helps Americans file income tax returns, and QuickBooks, a cloud-based application that helps small businesses manage payments.
The deal, which is expected to add to Intuit’s adjusted earnings for full year fiscal 2022, also comes as it is set to benefit from a recovery among small businesses from their pandemic-induced slump.
The company has projected profit and revenue levels above estimates for fiscal 2022.
(Reporting by Sohini Podder in Bengaluru; Editing by Arun Koyyur)