- Daily Zen
The $12 billion Mailchimp deal is Intuit’s largest to date.
The month of September brings with it some of the biggest mergers and acquisitions of 2021. Joining the high-profile transactions of Packable – Highland Transcend and PayPal – Paidy is Intuit as it announced a multi-billion dollar deal. Tax and accounting software giant Intuit is acquiring Mailchimp for about $12 billion in cash and stock deal.
The deal is Intuit’s largest to date and is an expansion into the company’s vision of an end-to-end customer growth platform for small and mid-market businesses. Mailchimp has a lot of customer data and “We have all the purchase data,” Intuit’s chief executive, Sasan Goodarzi, said in an interview. “When we bring the platforms together, I’ll actually not only know who I marketed it to, but what you bought when you bought it.”
The Intuit – Mailchimp deal is subject to regulatory approvals. It is expected to close before the end of Intuit’s fiscal 2022 second-quarter ending Jan. 31.
Mailchimp is a popular email marketing company with more than 2.4 million monthly active users, and 800,000 paid customers. With the acquisition of Mailchimp, Intuit hopes to combine the email marketing platform’s digital marketing services with QuickBooks, its accounting program, to help small and mid-market businesses manage their customers as well as their books.
Once the deal is completed, Intuit will issue $200 million of restricted stock units to Mailchimp employees. Out of this, $140 million will be expensed over four years while $60 million over six years.
“The total consideration includes approximately $300 million of assumed Mailchimp employee transaction bonuses that will be issued in the form of restricted stock units, expensed over three years. The remaining consideration payable to Mailchimp’s equity holders will be payable in approximately equal parts of cash and Intuit common stock, with the shares of Intuit common stock being valued at $562.61 per share, calculated as the average of the daily volume-weighted average sales price per share for Intuit common stock for the five trading days ending on September 8, 2021,” the companies said in a statement.
Together, Intuit and Mailchimp will work to deliver an end-to-end customer growth platform for small and mid-market businesses. These businesses will be able to take their platforms online, manage their client relationships, track analytics, pay employees, optimize cash flow, and stay compliant through the platform.
Shares of Intuit have risen about 75 percent over the past twelve months, giving it a market capitalization of $152 billion.
Morgan Stanley & Co and Qatalyst Partners severed as Intuit and Ma