Square, Inc. (NYSE: SQ) is to acquire Credit Karma’s tax business, Credit Karma Tax, for $50m in cash.
The completion of this transaction is subject to customary closing conditions and is expected before the end of 2020. Until close, the two companies will continue to operate independently.
The deal was agreed on behalf of Cash App, the company’s financial services app that allows individuals to spend, send, store and invest money.
Credit Karma Tax provides a free, do-it-yourself tax filing service for consumers and the acquisition provides a chance to further digitize and simplify the tax filing process in the United States. The tax product will expand Cash App’s diverse ecosystem of financial tools — which currently includes peer-to-peer payments, Cash Card, direct deposit, as well as fractional investing in traditional stocks and bitcoin — giving customers another way to manage their finances from their pocket.
Launched in 2013 as a peer-to-peer money transfer service, Cash App currently provides customers with access to a variety of services and an integrated ecosystem of relevant financial services for spending, sending, storing, and investing money.
In the third quarter of 2020, Cash App generated $385 million in gross profit, or more than $1.5 billion on an annualized basis, and as of June 2020 had more than 30 million monthly active customers.
With offices in the United States, Canada, Japan, Australia, Ireland, Spain, and the UK, Square provides tools for businesses to reach buyers online and in-person, manage their business, and access financing. Individuals use Cash App to spend, send, store, and invest money.
Square has just invested in Italian Satispay.
FinSMEs
26/11/2020