Shares of Intuit Inc. rose 1.7% in morning trading, after the parent of TurboTax tax preparation software said it reached an agreement with the Department of Justice (DOJ) regarding its proposed $7.1 billion acquisition of Credit Karma, in which the Credit Karma Tax business will be sold to Square Inc. to help assuage antitrust concerns. The deal with Square is contingent on the closing of the Intuit-Credit Karma merger. As part of the deal with Square, Intuit and Credit Karma will committed to provide certain transition services. Square's stock rallied 3.0% in morning trading. "We are pleased to have cleared this necessary regulatory review with DOJ and appreciate their careful consideration of this transaction," said Intuit Chief Executive Sasan Goodarzi. "Consumers will continue to benefit from the Credit Karma Tax product as part of Square." Intuit shares have rallied 33.9% year to date, while Square's stock has rocketed 234.0% and the S&P 500 has gained 12.2%.
Intuit (Nasdaq: INTU), proud maker of TurboTax, QuickBooks, and Mint, with 57 million customers, and Credit Karma, the consumer technology platform with more than 110 million members in the U.S., Canada and the U.K., today announced that they have entered into a consent decree with the U.S. Department of Justice (DOJ), an important step in completing their previously announced merger. The companies also announced that they have entered into an Assurance of Discontinuance with the New York State Attorney General that, along with the DOJ action, moves Intuit’s acquisition of Credit Karma one step closer to closing, subject to the satisfaction of customary closing conditions.
Michelle Clatterbuck, chief financial officer of Intuit (Nasdaq: INTU) will present at the Credit Suisse Technology Virtual Conference on Dec. 1.