MailChimp, a provider of email marketing tools, announced on Sept. 13 that it will be acquired by Intuit, a provider of tax filing and financial software, for $12 billion.
The purchase is expected to be completed by the second quarter of 2022, both in cash and in stock. The acquisition is expected to increase earnings per share in 2022. Intuit also acquired credit Karma, a personal finance company, for $7 billion in 2020, but the $12 billion acquisition is the highest ever for Intuit.
Mailchimp was founded in 2001 and is estimated to have a pre-tax profit of about $300 million in 2020, and an enterprise value of $7 billion to $11 billion. It was reported in early August 2021 that Mailchimp was considering a sale.
Finding new customers is the biggest challenge for small businesses, Intuit said in its explanation, and more than a quarter of businesses are also struggling to retain existing customers. Despite this, nearly three-quarters of small and medium-sized enterprises (SMEs) do not use customer relationship management solutions, and Mailchimp said it will advance its mission to promote prosperity for consumers and small businesses around the world.
In addition, Mailchimp CEO Ben Chesnut said that he and his partner were born into small business owners, and he thought that he would support the growth of small businesses, and that this is our DNA. He also spoke of the acquisition, saying he was delighted to be able to join forces with Intuit to share the acceleration of evolution.
Even after the acquisition, Mailchimp remains the same brand. Customers and partners said they will continue to work with Intuit as they seek the same consistency as ever with new features and meet these needs. Related information can be found here.