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Intuit to Acquire Marketing Platform Mailchimp for USD 12bn
Wednesday 15 September 2021

California-based technology platform Intuit (NASDAQ: INTU) has agreed to acquire Georgia, US-based marketing platform Mailchimp for approximately USD 12m in cash and stock, the company said.

The total consideration includes approximately USD 300m 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 USD 562.61 per share.

Following the close of the transaction Intuit will also issue USD 200m of restricted stock units to Mailchimp employees, of which USD 140m will be expensed over four years, and USD 60m will be expensed over six months.

Intuit expects the cash consideration to be financed through cash on hand and new debt of approximately USD 4.5bn to USD 5bn.

The planned acquisition of Mailchimp advances Intuit's mission of powering prosperity around the world, and its strategy to become an AI-driven expert platform.

With the acquisition of Mailchimp, Intuit will accelerate two of its previously-shared strategic Big Bets: to become the centre of small business growth; and to disrupt the small business mid-market.

Together, Intuit and Mailchimp will work to deliver on the vision of an innovative, end-to-end customer growth platform for small and mid-market businesses, allowing them to get their business online, market their business, manage customer relationships, benefit from insights and analytics, get paid, access capital, pay employees, optimise cash flow, be organised and stay compliant, with experts at their fingertips.

Morgan Stanley and Co. LLC is serving as Intuit's financial advisor and Latham and Watkins LLP is serving as its legal advisor.

Qatalyst Partners is serving as Mailchimp's exclusive financial advisor and King and Spalding LLP is its legal advisor.
Date Published: 15/09/2021