INTU+ +1.35% rose 1.7% in morning trading following the announcement by the parent company of tax preparation software TurboTax to have reached an agreement with the Department of Justice (DOJ) on the proposed acquisition of Credit Karma worth $ 7.1 billion, which provides for the sale of the Credit Karma Tax business to Square Inc. SQ, +1.27% to dispel doubts about cartels. The deal with Square depends on the completion of the Intuit-Credit Karma merger. As part of the agreement with Square, Intuit and Credit Karma will commit to offering certain transition services. Square`s stock rose 3.0% in morning trading. “We are pleased to have approved this necessary regulatory review with the DOJ and appreciate their scrutiny of this transaction,” said Sasan Goodarzi, Intuit`s Chief Executive Officer. “Consumers will continue to benefit from the credit karma tax as part of Square.” Intuit shares are up 33.9% year-to-date, while Square shares are up 234.0% and the S&P 500 SPX +0.88% is up 12.2%. Founded in 2007 by Kenneth Lin, Credit Karma is a consumer technology company with more than 110 million members in the United States, the United Kingdom and Canada, more than half of whom are American millennials. While the members of the company are best known for their pioneer in free credit scores, they turn to Credit Karma for everything related to their financial goals, including identity monitoring, credit card applications, credit purchases (car, home and private), insurance, high-yield savings accounts and now checking accounts through our banking partner, MVB Bank, Inc., FDIC member – all for free. Learn more about how Credit Karma members are making financial progress on Instagram, Facebook and Twitter. Thanks to the combined company`s skills and accelerated innovation, consumers, including 57M`s intuit customers and 110M Credit Karma members, will quickly see revolutionary benefits.
Consumers will find the right financial products, including unparalleled offers for credit cards, loans and insurance. The platform will also help them maximize their tax refund and link them to high-yield savings accounts and checking accounts to allow them to access their money faster. Consumers will also have access to financial expertise and advice, actionable knowledge, tools and live experts that will help them better understand their overall financial image, make better financial decisions and build wealth. The week begins with a significant M&A in the world of financial technology startups. Today, Intuit – the accounting, tax reporting and financial planning software giant behind QuickBooks, TurboTax and Mint – has confirmed that it plans to acquire Credit Karma – the Fintech startup with more than 100 million registered users, 37 million of whom are monthly active users, with whom people check their creditworthiness, buy credit cards and credits, submit taxes and much more. Intuit said it would pay $7.1 billion for credit karma, making these Intuit the largest acquisition to date and one of the largest in the category of private fintech companies. . .