US-based financial platform company Intuit has obtained the regulatory approval from the US Department of Justice (DOJ) to acquire personal finance company Credit Karma.
Intuit is the creator of TurboTax, QuickBooks, and Mint with 57 million customers, while Credit Karma has over 110 million customers in the US, Canada, and the UK.
Both the companies have inked a consent decree with the US DOJ to complete their previously announced merger.
They have also entered into an ‘Assurance of Discontinuance’ with the New York State Attorney General to speed up the merger.
Financial details of the transaction were not divulged.
However, in February 2020, Intuit said it would buy Credit Karma in a $7.1bn cash and stock deal.
The combined entity will provide consumers with financial products and offers on credit cards, loans, and insurance.
The integrated platform will offer high-yield savings accounts and checking accounts to consumers.
It will provide them with access to financial advisory, insights, tools, and live experts for making better financial decisions and building wealth.
The platform will also enable consumers to maximise their tax refunds.
The mobile payments company Square, on behalf of its Cash App, has agreed to acquire Credit Karma Tax business.
Credit Karma Tax provides consumers with access to a free, do-it-yourself tax filing service. Square will pay $50m in cash to acquire the business.
This divestment depends on Intuit’s successful acquisition of Credit Karma, which is subject to customary closing conditions.
Square’s Cash App lead Brian Grassadonia said: “With this acquisition, we believe Cash App will be able to ease customers’ burden of preparing taxes every year.”
Credit Karma founder and CEO Kenneth Lin said: “Today is an exciting milestone for Intuit and Credit Karma. 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.”
Credit Karma Tax director of engineering Patrick Fink added: “Credit Karma Tax provides a seamless, mobile-first solution for individuals to file their taxes at no cost. We are excited to be joining an entrepreneurial team and continue to build simple, innovative tools for Cash App customers.”
Intuit CEO Sasan Goodarzi said: “We are pleased to have cleared this necessary regulatory review with DOJ and appreciate their careful consideration of this transaction. Consumers will continue to benefit from the Credit Karma Tax product as part of Square.”