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Tech platform Intuit to acquire marketing firm Mailchimp for $12 bn

Tech platform Intuit to acquire marketing firm Mailchimp for $12 bn

Once the transaction is completed, Intuit will issue $200 million of restricted stock units to Mailchimp employees. Out of this, $140 million will be expensed over four years while $60 million over six months

Intuit to acquire Mailchimp Intuit to acquire Mailchimp

Global technology platform Intuit, makers of TurboTax, QuickBooks, Mint and Credit Karma, announced on Tuesday that they will acquire global customer engagement and marketing platform for growing small and mid-market businesses Mailchimp for $12 billion in cash and stock advances. The acquisition of Mailchimp will enable Intuit to become the centre of small business growth as well as disrupt small business mid-market.

“The total consideration includes approximately $300 million of assumed Mailchimp employee transaction bonuses that will be issued in the form of restricted stock units, expensed over three years. The remaining consideration payable to Mailchimp’s equity holders will be payable in approximately equal parts of cash and Intuit common stock, with the shares of Intuit common stock being valued at $562.61 per share, calculated as the average of the daily volume-weighted average sales price per share for Intuit common stock for the five trading days ending on September 8, 2021,” the companies said in a statement.

Once the transaction is completed, Intuit will issue $200 million of restricted stock units to Mailchimp employees. Out of this, $140 million will be expensed over four years while $60 million over six months.

The companies together will work to deliver the vision of an innovative, end-to-end customer growth platform for small and mid-market businesses. These businesses will be able to take their platforms online, market their business, manage customer relationships, get insights and analytics, get paid, access capital, pay employees, optimise cash flow, become organised and stay compliant through the platform.

Sasan Goodarzi, CEO of Intuit said, “We’re focused on powering prosperity around the world for consumers and small businesses. Together, Mailchimp and QuickBooks will help solve small and mid-market businesses’ biggest barriers to growth, getting and retaining customers.”

Mailchimp will bring technology at scale along with global customer reach to Intuit. The company, formed in Atlanta in 2001, has 13 million total users globally now with 2.4 million monthly active users, and 800,000 paid customers.

Morgan Stanley & Co and Qatalyst Partners served as Intuit and Mailchimp’s financial advisors respectively.

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