This afternoon Intuit confirmed confirmed rumors that it was in the process of buying MailChimp, detailing a $ 12 billion transaction that would bring the well-known email infra company into its corporate remittance.
Intuit is not a well-known player in the email marketing space. Instead the company is known for its turbotex software અને and the U.S. government’s affiliate lobbying to ensure it can continue to demand rent-purchasing its latest credit card and its more recent purchase of Mint.
The mailchimp transaction will have both cash and stock.
The question that comes to mind right now is: Why does Intuit spend 10% of its market capitalization to buy an email marketing company?
Per one publication, Intuit thinks the deal goes beyond its “strategy to become a powerful prosperity and AI-based expert platform around the world.” Normally at this point I’ll be converting the company’s corporate-speaker into something in English, but I’m struggling.
The company went on to say that buying its mailchip would “give it a boost”. [Intuit’s] Previously shared strategic Big Bets: to be the center of small business growth; And to disrupt small business in the middle market. ”
This is a little more grocable. Intuit’s QuickBooks service is a well-known product in the SMB space. Presumably Int Intuit believes it can sell more services to its existing small business customers. It still seems like a bit of a stretch, but we believe Egheads have come to the conclusion that the next corporate collaboration will be more than the sticker-shock compensation included in the deal.
Shares of Intuit are down 0.15% in after-hours trading, indicating something related to the transaction from Wall Street; Given how well the deal has leaked, the price of the compound could already be in Intuit’s share price.
For Atlanta, where MailChimp is headquartered, the deal is a win. MailChimp is a well-known bootstrap company, so if you were looking for confirmation that you can create a decorn outside of Silicon Valley and without the help of venture capital, here is the proof.