Intuit was considering another acquisition after Credit Karma


Weeks after shelling out $7 billion to acquire financial software giant Credit Karma Intuitive (NASDAQ: INTU) could be in the market for another acquisition. Intuit is interested in fintech company Finicity, a data aggregator whose API allows two applications to talk to each other, according to a report published Tuesday by Barrons.

Credit Sesame, a company similar to Credit Karma, and personal finance website NerdWallet are also reportedly being considered.

Image source: Getty Images.

Fintech under scrutiny

Barrons reports that the head of online tax preparation said people familiar with the situation were “looking closely” at Finicity, but the other two companies were also a possibility, although a private equity firm doubted Credit Sesame was a target because it offered little differentiation from Credit Karma. “Why would they want two? he was quoted as saying.

The credit score portal raised $43 million last August and is reportedly about to go public. Like Credit Karma, it’s a profitable business that could be worth over $750 million.

Intuit expanded further into the personal finance sector as a way to jump-start growth. The finiteness is similar to Visa‘s Plaid which it acquired in January for $5.3 billion and analysts believe it could fetch as much as $2 billion. Its APIs work with companies like Experian to help digitize the loan application process, especially for consumers with little or no credit history.

NerdWallet provides information on lons, credit cards, mortgages and savings accounts. No estimate of the price someone might be willing to pay for the business was provided.

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