Another day, another big issue for Intuit CEO Sasan Goodarzi: this time a $ 12 billion transaction for email seller Mailchimp months after he spent $ 7.1 billion to get the suit credit control Credit Karma.
For Goodarzi, who does business, the strategy is simple: bring in new technologies and make Intuit grow even faster.
“We want to grow the double-digit company. We want our operating income to grow faster than our revenue and we want to leverage our capital. Both Credit Karma and Mailchimp allow the company to move forward five to ten years. capabilities that frankly we’ve only experienced and tried to build in. What we realized is that we could also do what they’ve done, but it would take more than ten years, ”Goodarzi told Yahoo Finance Live.
Intuit said Monday afternoon it would acquire Mailchimp for $ 12 billion in a mix of cash and employee shares. Mailchimp will bring Intuit a total of 13 million users worldwide, 2.4 million monthly active users and 800,000 paid customers. The company has 70 billion contacts and more than 250 partner integrations.
Intuit believes Mailchimp will increase earnings per share for its 2020 fiscal year.
Intuit shares rose about 3% in the news. Shares rose 2% on Tuesday afternoon.
Analysts generally expressed support for the transaction for several reasons.
First, it looks like Intuit hasn’t paid too much to buy Intuit, which should help bolster the asset’s long-term return profile. Second, Intuit has demonstrated solid early success in integrating Credit Karma and generating agreement synergies, giving hope that it can do the same with Mailchimp.
And finally, Mailchimp will provide Intuit with more data to sell other services like Quickbooks to small for-profit businesses.
“Overall, we like this deal. While the $ 12 billion price tag is the largest Intuit in history, Mailchimp instantly offers a full-scale presence in the main office with a broad product portfolio and $ 800 million. “The deal helps make Intuit’s vision of becoming a comprehensive small business platform, covering both the front office and the back office, a reality,” said Jefferies analyst , Brent Thilll.
Brian Sozzi is a general publisher and still Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi yen LinkedIn.
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