DoJ Okays Intuit's Credit Karma Acquisition, Credit Karma Tax Sale to Square DoJ Okays Intuit's Credit Karma Acquisition, Credit Karma Tax Sale to Square
Intuit and Credit Karma logos

DoJ Okays Intuit’s Credit Karma Acquisition, Credit Karma Tax Sale to Square

Back in February, Intuit announced plans to purchase the free credit score site Credit Karma for a whopping $7.1 billion. However, as always, the deal was subject to regulatory approval. Now, the company has revealed that it’s entered into a consent decree with the U.S. Department of Justice as well as an Assurance of Discontinuance with the New York State Attorney General. As a result, the path is now cleared for the transaction following customary closing conditions.

Also announced alongside this update is the news that the Credit Karma Tax — a free tax prep and filing platform — will indeed be sold to Square for $50 million in cash. This transaction will be contingent on the Intuit-Credit Karma deal closing. Previously, it was reported that the service was a sticking point for regulators who feared that the option would be discontinued under Intuit’s control. According to Square, it seems that the tax prep tool will be worked into the company’s Cash App, which currently offers peer to peer payments, the ability to buy and sell Bitcoin, stock trading, and more.

The acquisition will bring together two large FinTech companies. Intuit — best known for their TurboTax and Quickbooks software — currently has 57 million customers. Meanwhile, Credit Karma reports more than 110 million users across the United States, Canada, and the United Kingdom.

In a press release announcing the latest developments, Intuit CEO Sasan Goodarzi said of the update, “We are very excited to reach this important milestone today. This brings us one step closer to transforming personal finance by making it simpler for consumers to find the right financial products, put more money in their pockets, and provide financial expertise and advice.” Additionally, Credit Karma founder and CEO Kenneth Lin said of joining with Intuit, “Together with our trusted brands, customer scale, as well as our data and AI platforms, we will achieve more than either company could on its own.” Both leaders also addressed the sale of Credit Karma Tax to Square, with Lin adding, “We are pleased to have accomplished our goal of addressing any potential regulatory hurdle and proud we’ve found a partner for the Credit Karma Tax business.” Meanwhile, Cash App Lead Brian Grassadonia said of Square’s purchase, “We created Cash App to provide more access to the masses of people left out of the financial system and are constantly looking for ways to redefine our customers’ relationship with money by making it more relatable, instantly available, and universally accessible. That’s why we’re thrilled to bring this easy-to-use tax product to customers as we continue to build out the suite of tools Cash App offers.”

While it looks as though this FinTech acquisition will come to fruition, another continues to look in doubt. Earlier this month, the Justice Department filed suit to block Visa’s planned takeover of Plaid. As the agency explained in its suit, “By acquiring Plaid, Visa would eliminate a nascent competitive threat that would likely result in substantial savings and more innovative online debit services for merchants and consumers.” Visa’s purchase of the API used by such apps as Robinhood, Venmo, and others was originally announced in January and carries a price tag of $5.3 billion.

Overall, the latest news from Intuit, Credit Karma, Square, and the Department of Justice seems to be filled with wins on all sides. For Intuit, the purchase of Credit Karma will bring millions of new users into their ecosystem, presenting them with plenty of upsell opportunities. At the same time, consumers will continue to have a free tax prep option that competes with Intuit’s paid tools as (the presumably set to be renamed) Credit Karma Tax ends up in the capable hands of Square. With that, it seems that it will only be a matter of time before this major FinTech deal is done.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...