From helping file tax returns to… newsletters? Yep, you read that right. Intuit, the US-based financial software company, with services that help Americans file their taxes, is flexing its creative muscles and wants a break from the boring number crunching.
The company is in talks to buy email marketing firm Mailchimp at a purchase price of over $10b. While it may seem left-field for Intuit, both companies do share some things in common — Intuit, apart from its tax preparation software, also offers QuickBooks: an accounting software for business clients. Mailchimp’s digital marketing services are similar in that they hold an enterprise clientele as well, presenting opportunities for cross-selling. Don’t get too excited, though, Mailchimp is still in talks with other tech firms and also private equity firms, so the talks could fall through.
why it matters
Intuit derives the majority of its earnings from the SME-facing services it offers. After facing multiple lawsuits in 2019 over its tax preparation software, this could be a bid for it to diversify further away from tax. Intuit’s stock price was up by 0.2% at market open yesterday, while being 51% up since the start of the year.