By
Darya Rudz
April 14th, 2020
This deal is regarded as one of the largest investments initiated by Intuit to date and will be paid in both cash and stock.
Intuit, a financial service platform headquartered in California, is all set to buy Mailchimp, which is a leading email marketing platform in a deal comprising $12 billion. The payment will be made in both cash and stock. The company in an announcement on Monday confirmed the news of the following accession which marks their largest acquisition to date.
Intuit to Acquire Mailchimp with an Intention to Boost Its Client Base
The company on Monday has told the media that they are looking towards expanding their existing user base and include more small business clients to increase their work operations. Intuit had previously purchased CreditKarma, a credit finance service platform for about $8 billion, and now has acquired MailChimp in an attempt to expedite profits in the small business domain and help establish brand supremacy in the same professional sphere.
MailChimp is one of the major email marketing platforms which is used by many leading enterprises to conduct vigorous email marketing and increase their sales output. The company is headquartered in Atlanta and was founded in 2001. MailChimp has successfully carved a distinctive niche in the sphere of email marketing where it allows its users to send emails comprising lead generation strategies to help expand consumer base and increase organic sale logistics. The company at present hosts more than 13 million users on its platform.
The following acquisition has been regarded as one of the largest investments initiated by Intuit to date and will be paid in both cash and stock. The company has also clarified its intent behind this business acquisition and has stated that its goal is to become a center of small business activity and make extensive use of these small enterprises to seek profits and stimulated gains.
The agreement further states that Mailchimp will be closely working with Intuit’s QuickBooks, a specialized accounting software of the company to target small businesses and enterprises and devise strategies to retain such enterprises for long. Intuit’s CEO Sasan Goodarzi has commented that Mailchimp comprises a lot of essential user data that can be used to initiate smart contacts with consumers across the globe and help stimulate sales and marketing for the same.
The acquisition is still under regulatory supervision and is expected to close before the end of Intuit’s second-quarter in 2022.
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