Mailchimp, a marketing automation platform and email marketing service, was recently purchased by Intuit, the company behind TurboTax and QuickBooks software.
According to reports, Intuit agreed to buy the privately held Mailchimp for $12 billion in cash and stock, a deal that would finally merge the two major service providers for small businesses.
In a report published by Bloomberg News, this latest deal would widen Intuit's offerings for businesses searching for ways to reach and serve customers online.
Intuit is known for its very efficient software, such as QuickBooks, an accounting software that has been in service for decades. Its other popular product, the TurboTax, has become a go-to service when it comes to online tax filing.
Intuit has previously acquired a company last year, Credit Karma, a multinational personal finance group.
A major boost
A lot of companies are now recovering from the global disruptions of the COVID-19 pandemic, and many of them are now embracing digitization, a service at which Intuit is very good at.
And by adding Mailchimp under its wings, Intuit will now be able to offer additional services, which include digital marketing services, shoppable links, automation products, and social advertising.
Sasan Goodarzi, chief executive officer of Intuit, said that the deal between Intuit and Mailchimp would certainly lead to an improved success rate of small businesses.
He also said that customers should expect synergies between the two company's most popular services. Mailchimp will soon be integrated with QuickBooks, which would help businesses target their ideal customers better.
Largest deal yet
Intuit's purchase of Mailchimp is its biggest deal yet. Credit Karma came in second when Intuit purchased it for $7.1 billion.
Mailchimp is considered one of the most valuable companies in the marketing circles, and purchasing it comes with a lot of challenges.
But thanks to Intuit co-founder Scott Cook's close relationship with Mailchimp founders, it became possible for Intuit to jump over the hurdles and successfully purchase the company.
And now that Mailchimp has changed hands, its new owner plans to make every Mailchimp employee a stockholder of the company, and this is just one of the many changes that would happen in the marketing services company.