(WSJ) Intuit, Inc. has offered to buy Mailchimp, an email marketing firm, in a deal of $12 billion. The move targets the growth potential of small and mid-size enterprises.
The deal, which involves cash and $4.5- $5 billion debt, is expected to increase Intuit’s 2022 fiscal earnings.
Mailchimp has 2.4 million monthly active customers, out of which 800,000 are paying subscribers. The firm’s revenue increased 20% to $800 million in 2021.
An estimated $300 million in Mailchimp’s employee transaction bonuses included in the deal will be issued as restricted stock units over the next three years.
The transaction will exceed Intuit’s other deal of $7 billion during the acquisition of Credit Karma Inc. last year. It is the largest deal ever by the company.
Intuit says Mailchimp’s headquarters will not be moved from Atlanta and the deal will be concluded in the second quarter of 2022.
INTU: NASDAQ is up + 0.22% on pre-market.
