/Intuit, Credit Karma reach deal with DOJ to help complete $7.1 billion merger – MarketWatch

Intuit, Credit Karma reach deal with DOJ to help complete $7.1 billion merger – MarketWatch


Shares of Intuit Inc.
INTU,
+1.25%

rose 1.7% in morning trading, after the parent of TurboTax tax preparation software said it reached an agreement with the Department of Justice (DOJ) regarding its proposed $7.1 billion acquisition of Credit Karma, in which the Credit Karma Tax business will be sold to Square Inc.
SQ,
+4.62%

to help assuage antitrust concerns. The deal with Square is contingent on the closing of the Intuit-Credit Karma merger. As part of the deal with Square, Intuit and Credit Karma will committed to provide certain transition services. Square’s stock rallied 3.0% in morning trading. “We are pleased to have cleared this necessary regulatory review with DOJ and appreciate their careful consideration of this transaction,” said Intuit Chief Executive Sasan Goodarzi. “Consumers will continue to benefit from the Credit Karma Tax product as part of Square.” Intuit shares have rallied 33.9% year to date, while Square’s stock has rocketed 234.0% and the S&P 500
SPX,
-0.27%

has gained 12.2%.

Original Source