Intuit Obtains Clearance From Department Of Justice For Acquisition Of Credit Karma

(RTTNews) - Intuit (INTU) and Credit Karma said that they have entered into a consent decree with the U.S. Department of Justice, a step in completing their merger. The companies have also entered into an Assurance of Discontinuance with the New York State Attorney General.

In addition, Intuit and Credit Karma announced Credit Karma's agreement with Square (SQ), pursuant to which Credit Karma will divest its Credit Karma Tax business to Square. The completion of the transaction with Square is contingent upon the successful closing of Intuit's acquisition of Credit Karma.

As part of the divestiture transaction, Intuit and Credit Karma have made certain commitments to Square, including the provision of certain transition services to help ensure a successful transition of the business.

In February, Intuit agreed to buy personal-finance portal Credit Karma for about $7 billion in cash and stock.

Separately, Square Inc. (SQ) confirmed Wednesday that it has agreed to Credit Karma Tax, on behalf of Cash App, the financial services app that allows individuals to spend, send, store and invest money.

Square said it will pay $50 million in cash for Credit Karma Tax, which provides a free, do-it-yourself tax filing service for consumers.

The parties expect to close the transaction before the end of 2020.