Intuit Closes $7.1 Billion Acquisition of Credit Karma

Intuit closed its $7.1 billion acquisition of Credit Karma on December 3, 2020, after the deal was first announced in February 2020. Credit Karma operates a platform that provides free credit scores and reports to over 110 million members and generates revenue by recommending financial products including credit cards, loans, and insurance through embedded finance partnerships. The acquisition combines Intuit's expertise in tax preparation (TurboTax) and small business accounting (QuickBooks) with Credit Karma's consumer finance marketplace.

Credit Karma's model of connecting consumers with bank and fintech lending products represents a significant embedded finance distribution channel. The combined company can leverage data from tax filings and credit monitoring to offer more personalized financial product recommendations. The deal required regulatory review and Intuit divested Credit Karma's tax business to Square to address antitrust concerns.

The transaction positions Intuit as a major player in embedded financial services, bridging tax, accounting, and consumer credit products.