Intuit's acquiring Credit Karma will help both companies grow faster, its CEOs say - Business Insider

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Intuit's CEO says he's not chasing 'mega deals' and says the $7.1 billion acquisition of Credit Karma will give consumers more choice

It's the biggest deal in Intuit's 37-year history and comes just one year after Sasan Goodarzi took the CEO reins at Intuit. And the acquisition is being announced at a time of heightened regulatory scrutiny over antitrust and privacy issues.

Intuit has been working to make itself into a platform that works like a digital personal financial assistant for users Credit Karma was built around the idea of using customers' financial data to help direct them to the tools that would be most helpful to them. Goodarzi said that capability is key to Intuit's overall goal. In order to get there they needthat directs people to the tools they need, he said.

"When you look at the data assets that Intuit has, the capabilities around fraud, the culture and the alignment of mission that we had, it made so much more sense to work through that relationship than the fundraising mechanism that is the IPO market," Lin said. Intuit doesn't plan to get rid of Credit Karma's competing offerings. Goodarzi said on a call with investors that it will give customers more choice, which will ultimately benefit the whole company. Acquiring a smaller rival with a competing type of software could put the deal in the crosshairs of antitrust regulators, who have begun taking a much harder look at tech acquisitions from Google, Facebook, Apple and other large tech companies.

Another potential area of concern is growing regulations around consumer data privacy which aim to make sure people have control over the data companies are collecting about them. California's new data privacy law went into effect this year and Europe's GDPR law has been in effect for a few years.

 

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Yes, because market consolidation is famous for giving consumers more choice

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