TurboTax maker Intuit Inc, buys email-marketing pioneer Mailchimp for $12 bln to capitalize on the growth of SMEs, according to a report by WSJ on Monday.
- The cash-and-stock deal for closely held Mailchimp would be Intuit’s largest deal ever and set it up to provide more services to small businesses such as marketing and customer-relationship management.
- The Atlanta-based firm, Mailchimp, which had not taken any external funding, started as a web-design agency and ran an email-marketing service on the side.
- Today, Mailchimp serves 2.4 million monthly active users, including 800,000 paying customers, with about 50% of its customers being outside of the U.S.
- Intuit’s goal is to provide small-business owners, who lack the resources of their bigger competitors, access to easy-to-use marketing technology.
By combining Mailchimp with Intuit’s bookkeeping software QuickBooks, Intuit would enable businesses to do anything from setting up online stores and displaying ads to potential customers to invoice clients and managing payroll. INTU down -1.76%.