Intuit has agreed to buy personal finance site Credit Karma, the company confirmed in a press release on Monday.
Intuit (INTU) - Get Report, which makes TurboTax, Quickbooks and money-management app Mint, is purchasing Credit Karma for $7.1 billion in cash and stock. Media outlets reported earlier that the companies were nearing a deal, which is the largest in Intuit's history.
"By joining forces with Credit Karma, we can create a personalized financial assistant that will help consumers find the right financial products, put more money in their pockets and provide insights and advice, enabling them to buy the home they’ve always dreamed about, pay for education and take the vacation they’ve always wanted,” said Sasan Goodarzi, CEO of Intuit, in a statement.
Credit Karma offers information on credit cards and other financial products aimed at everyday consumers, as well as a free credit check tool. The site earns money by displaying personalized recommendations for financial products, such as credit cards, and collecting a fee from that institution if a customer signs up.
Intuit said in the release that the two companies will work together to build a "consumer finance platform that works like a personalized financial assistant, helping consumers find the right financial products, put more money in their pockets and have access to actionable insights and advice."
Shares of Intuit were volatile in after-hours trading, but overall up close to 2% after the deal with Credit Karma was announced.
Alongside the deal announcement, Intuit also posted its latest quarterly results on Monday. The tax software maker posted earnings of $1.16 per share and revenues of $1.696 billion, beating consensus estimates on both counts.
Year to date, Intuit shares are up 7%.