Intuit near deal to buy Credit Karma
Intuit is close to an agreement to buy Credit Karma for roughly $7 billion, according to a report by the Wall Street Journal, citing anonymous sources. The company is expected to announce the agreement on Monday, which would be its largest in its 37-year history.
Credit Karma, a startup headquartered in San Francisco, was valued at about $4 billion in a private share sale roughly two years ago. The platform offers users free access to credit scores and reports, and gives personalized loan and credit card recommendations based on the users’ credit history.
Credit Karma is also active in the insurance space. In 2018, the company introduced a new feature that allows members to see what they could be paying for auto insurance based on what other members like them are paying for the same coverage. “We built the auto experience to help put money back into the pockets of our members,” said Credit Karma founder and CEO Kenneth Lin at the announcement. “With our refinance experience, we’ve helped our members save nearly $150 million on their auto loans in under a year. We plan to do the same for insurance.”
Insurance products are offered through Credit Karma Insurance Services, LLC, and the company, which advertises its insurance offering on Instagram, is currently looking for a business development manager for its auto insurance vertical who will be responsible for “developing and executing on a partnership growth strategy.”
Update: Intuit confirmed the acquisition.