Intuit acquires email marketing company Mailchimp for $12 billion

The merger accelerates Intuit's vision to deliver an integrated software platform for small and medium-sized businesses.

The proposed acquisition of Mailchimp for approximately $12 billion in cash and stock supports Intuit's global growth ambitions and its strategy to become a specialized platform powered by artificial intelligence. Intuit's acquisition of Mailchimp accelerates two key strategic goals: to become a growth centre for small businesses and to disrupt the SMB market.

Together, Intuit and Mailchimp will create an innovative, integrated customer development platform that enables SMBs to manage their online business, advertise, manage customer relationships, access data and analytics, get paid, access cash, pay employees, optimize cash flow, and stay organized and compliant. With the help of experts, SMEs have a platform for customer development. By combining customer data from Mailchimp with purchasing data from QuickBooks, SMBs can get the information they need to keep their businesses growing and reliable.

Our goal is to help consumers and small businesses around the world thrive." - Sasan Gudarzi, CEO of Intuit, said: "Together, Mailchimp and QuickBooks are removing a major barrier for small businesses looking to attract and retain customers. "With Mailchimp, we can offer an integrated growth platform that helps our customers grow and manage their businesses by giving them the insights they need to succeed. Our vision to give them the knowledge to help them succeed is clear."

Mailchimp gives Intuit scalable technology and a global customer base Founded in 2001 as an email marketing solution in Atlanta, Georgia, USA, Mailchimp is a powerful and advanced set of services powered by artificial intelligence. With its powerful and advanced set of AI-powered technologies, Mailchimp has made the company a global leader in customer acquisition and automated marketing.

13 million users worldwide, 2.4 million monthly active users, 800,000 paying customers, 50% of customers outside the US.

Data and technology, 70 billion connections, integration with over 250 major partners.

Extensive automation based on artificial intelligence enabling 2.2 million predictions per day.

Over the past 20 years, we have significantly developed and expanded the Mailchimp platform to help millions of small businesses around the world start and grow." - Ben Chestnut, CEO and co-founder of Mailchimp, said: "Together with Intuit, we share a passion for helping small businesses. By partnering with Intuit, we are taking our offerings to the next level and using Intuit's artificial intelligence platform to deliver even better products and services to small businesses. This is an exciting new chapter for Mailchimp, our 1,200+ dedicated employees and our customers."

Both Intuit and Mailchimp are tackling the biggest challenges facing small businesses. Two-thirds of SMBs say the biggest obstacle is attracting new customers, while more than 25% struggle to retain existing customers Nearly three-quarters of SMBs have not yet implemented a customer relationship management solution 84% of SMBs still struggle to coordinate inventory across sales channels 84% of SMBs use pen and paper or spreadsheets to coordinate inventory across sales channels 50% of SMBs fail within the first five years, The combination of these problems makes it difficult for small businesses to succeed, and Intuit has acquired Mailchimp to solve them.

The combination of Mailchimp and QuickBooks is a powerful force for SMBs in customer acquisition, customer acquisition and retention, business management, cash flow optimization and collaboration.

Information About The Deal

The transaction is expected to be accretive to Intuit's non-GAAP earnings per share in fiscal year 2022. Intuit has agreed to pay approximately $12 billion for the acquisition of Mailchimp, subject to customary transaction-related adjustments. The remainder of the consideration to be paid to Mailchimp shareholders will consist of cash and the daily volume-weighted average price of Intuit shares for the five trading days ending September 8, 2021. The remainder of the purchase price to be paid to Intuit Mailchimp shareholders will be paid in cash and primarily in equal portions of Intuit shares valued at $562.61 per Intuit share, based on the volume-weighted average daily price of Intuit shares for the five trading days ending September 8, 2021. The price per share for these shares was determined on the subscription date. The total value of these shares will depend on the change in the share price between the subscription date and the closing date.

Upon completion of the transaction, Intuit will grant Mailchimp employees $200 million worth of shares, of which $140 million will vest over four years and $60 million over six months.

Intuit will make cash payments and approximately $4.5-5 billion in new debt. The transaction does not affect Intuit's current dividend and shares repurchase policy. The transaction is expected to close by the end of the second quarter of 2022, subject to receipt or satisfaction of regulatory approvals and other customary closing conditions.

Morgan Stanley & Company LLC acted as a financial advisor, Latham & Watkins LLP acted as legal advisor, Qatalyst Partners acted as exclusive financial advisor to Mailchimp and King & Spalding LLP acted as legal advisor. King & Spalding LLP acted as legal adviser.

Conference Call Information

Representatives of Intuit and Mailchimp will discuss the transaction in detail during a conference call with investors on September 13, 2021 at 1:30 p.m. PT. Call 866-342-8591 in the U.S. or 203-518-9713 internationally and mention INTU0913. You can also listen to a live webcast of the teleconference at http://investors.intuit.com/Events/default.aspx. A transcript of the presentation will be available on Intuit's website following the teleconference.

NOTE

A replay of the teleconference will be available at 800-695-2533 or 402-530-9029 for one week, beginning two hours after the end of the international conference. No password is required. A live webcast will continue to be available on the Intuit website.

About Intuit

Intuit is a global technology platform that helps customers and communities solve their most complex financial challenges. With TurboTax, QuickBooks, Mint and Credit Karma, we serve nearly 100 million customers worldwide and are the leader in financial services. We believe that everyone has the opportunity to succeed. We're always looking for new and innovative ways to do it. Click here to learn more about what's new at Intuit and about our products and services.

About Mailchimp

Mailchimp is an integrated marketing platform for growing businesses that puts your audience at the centre of your marketing efforts, allowing you to reach your audience in one place through email, social media, landing pages, advertising, websites and other digital media. Mailchimp's marketing platform puts your audience at the centre of your marketing efforts, allowing you to reach your target audience and promote your business in one place via email, social media, landing pages, advertising, websites and other digital media. Founded in 2001, Mailchimp is headquartered in Atlanta with offices in Brooklyn, Oakland, Vancouver, London and Santa Monica. Mailchimp was founded in 2001 and is headquartered in Atlanta with offices in Brooklyn, Oakland, Vancouver, London and Santa Monica. The company employs more than 1,200 people.

Note On Forward-looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements and information generally relate to future events, anticipated revenues, earnings, cash flows or other aspects of our business or performance. Forward-looking statements often contain words such as "believes," "expects," "anticipates," "intends," "believes," "should," "may," "will," "forecasts," and similar expressions, as well as similar negative terms used to identify them. However, the absence of these words does not mean that these statements are not forward-looking.

Forward-looking statements involve risks and uncertainties, and important factors could cause actual results to differ materially from those expressed in such statements. A discussion of these and other risks affecting our business can be found in our 2021 Form 10-K and other SEC filings. The reports are available on our website at http://investors.intuit.com. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report. The Company does not undertake to update any statements or other information contained in this press release, except as required by law.

Investors
Kim Watkins
Intuit Inc.
650-944-3324
kim_watkins@intuit.com

Media
Kali Fry
Intuit Inc.
650-944-3036
kali_fry@intuit.com

Source: Intuit Inc.