RTTNews | Sep 13, 2021 05:26PM EDT

17:26 Monday, September 13, 2021 (RTTNews.com) - Accounting software provider Intuit (INTU), Monday said it has agreed to buy Mailchimp, a marketing platform for growing small and mid-market businesses, for about $12 billion in cash and stock.

Intuit, which is known for financial platforms like TurboTax and Credit Karma, said the acquisition will help it to become the center of small business growth and to disrupt the small business mid-market. Last year, the company bought Credit Karma for $7.1 billion.

"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," said Sasan Goodarzi, CEO of Intuit.

Mailchimp was founded in Atlanta, Georgia in 2001.

"Over the past two decades, we've vastly expanded and evolved Mailchimp's platform to help millions of small businesses around the world start and grow," said Ben Chestnut, CEO and Co-founder of Mailchimp. "With Intuit, we've found a shared passion for empowering small businesses. By joining forces with Intuit, we'll take our offerings to the next level, leveraging Intuit's AI-driven expert platform to deliver even better products and services to small businesses. This is an exciting new chapter for Mailchimp, our 1,200+ dedicated employees, and customers."

The transaction is expected to be accretive to Intuit's adjusted earnings for full year 2022. Intuit has agreed to pay total consideration of around $12 billion, which includes about $300 million of assumed Mailchimp employee transaction bonuses that will be issued in the form of restricted stock units, expensed over three years.

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