Intuit is in talks to acquire Mailchimp for more than $10 billion, according to a report by Bloomberg. The email marketing firm was first reported to be in acquisition talks in August. At the time, the reports said Mailchimp had received interest from unnamed large tech firms and private equity firms.
If the Bloomberg report is accurate, one of the large technology firms could be Intuit. The company is well known for making TurboTax and QuickBooks. Intuit is known as the premier provider of American tax software. Its market cap stands at $154.7 billion.
Intuit is the frontrunner
Intuit has an appetite for acquiring smaller companies. Data from market watcher Tracxn shows the company has made 34 acquisitions, the most recent being the purchase of OneSaas in February.
The Bloomberg report notes that no final decisions have been made. The discussions could yield nothing. In addition, another buyer may outbid Intuit, as others have expressed interest.
Mailchimp was founded right after the dot-com boom crashed and has become synonymous with email marketing campaigns run by eCommerce operations of all sizes. The company claims to be the world’s leading marketing automation platform, which is categorically true.
Mailchimp’s business
Mailchimp’s offering lends itself to small to medium-sized businesses, with augmentation provided through marketing tools, analytics, and other pertinent technologies. Over the years, the company has expanded into other types of marketing software.
It provides software that allows online retailers to link the email service to their websites and automatically send promotions to customers on their mailing list when they need to.
The business is profitable as Mailchimp generated earnings of $300 million last year, before interest, taxes, depreciation, and amortization. The company disclosed in 2019 that it was on track to reach annual revenue of $700 million.
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