Why Intuit is spending $12 bn to buy Mailchimp

Intuit, known for its small-business accounting and DIY tax-filing software, has agreed to acquire digital marketing company Mailchimp for about $12 billion in a cash-and-stock deal.
Intuit at an IT event
The deal, expected to close by the second quarter of fiscal 2022, is Intuit’s biggest-ever acquisition. Last year, Intuit bought personal finance portal Credit Karma for just over $7 billion.

The deal for Atlanta-based Mailchimp , which operates a marketing platform for small- and mid-market businesses, will help Intuit add insights to its Quickbooks platform that tracks spending.

Founded in Atlanta, GA in 2001, Mailchimp began by offering email marketing solutions, and evolved into a global leader in customer engagement and marketing automation fueled by a powerful, cutting-edge AI-driven technology stack.

Mailchimp has 13 million users globally, 2.4 million monthly active users, and 800,000 paid customers; with 50 percent of customers outside of the U.S.

Mailchimp has data and technology in the form of 70 billion contacts, and 250+ rich partner integrations.

Mailchimp makes AI-powered automation at scale fuels 2.2 million daily AI-driven predictions.

“There is incredible power in combining the customer data and the purchase data, and we wanted to put the power of the data in our customers hands,” said Sasan Goodarzi, Chief Executive at Intuit.

Mailchimp reported $800 million in revenue in 2020, a 20 percent growth. Half of its revenue comes from outside the United States. The company will continue to be based in Atlanta, Georgia, and operate under its current brand following the acquisition.

Mountain View, 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.