Financial software moguls Intuit to acquire AI-based email marketing company Mailchimp for $12 billion in cash and stock.
Intuit, makers of financial software such as TurboTax, Mint, QuickBooks, and Credit Karma, have announced their agreement to acquire Mailchimp, a global customer engagement and email marketing platform for small and medium-sized businesses. Intuit views the planned acquisition of $12 billion in cash and stock to accelerate its growth and provide technology for small businesses worldwide.
Sasan Goodarzi, CEO of Intuit, said that the goal of Intuit is to power prosperity around the world for customers and small businesses. Intuit’s QuickBooks accounting software, along with Mailchimp, will help small and medium-sized companies solve their biggest challenge, getting and retaining customers. He also added that the acquisition of Mailchimp furthers Intuit’s vision of putting data in the hands of customers to help them with their end-to-end customer growth and, ultimately, the growth of their businesses.
For nearly two-thirds of small businesses, their main obstacle remains in finding new customers. Over twenty-five percent of them struggle in retaining their existing customers, but roughly three-fourth of them are yet to adopt a customer relations management service. Eighty-four percent of small businesses use pen and paper or spreadsheets to take stock of their inventory, and half the small businesses fail within the first five years primarily due to cash flow challenges. Collectively these challenges create barriers to the success of small and mid-market businesses. Intuit says that its acquisition of Mailchimp will help businesses solve these problems.