The acquisition of Mailchimp by Intuit is a landmark event in the tech industry, bringing together two major players in business software. This article delves into the story behind Mailchimp, its founders, and the strategic reasons for its acquisition by Intuit.
Mailchimp is a leading email marketing and marketing automation platform designed to help small businesses grow. Founded in 2001, Mailchimp offers a suite of tools for email marketing, customer relationship management (CRM), and marketing automation. It serves over 13 million users globally, including 2.4 million monthly active users and 800,000 paying customers.
The platform is known for its user-friendly interface and robust feature set that empowers businesses to create, send, and analyze email campaigns effectively.
Mailchimp was founded by Ben Chestnut and Dan Kurzius. The company started as a side project while they were running a web design agency called the Rocket Science Group. Initially, Mailchimp was a paid service, but in 2009, the founders decided to offer a freemium model, which significantly boosted its user base.
The company remained bootstrapped, avoiding external funding and maintaining full control until its acquisition by Intuit.
Intuit, a global financial software company known for products like QuickBooks and TurboTax, acquired Mailchimp in September 2021. The acquisition, valued at approximately $12 billion in cash and stock, aimed to enhance Intuit's ecosystem by integrating Mailchimp's marketing automation capabilities with Intuit's financial management tools.
Intuit acquired Mailchimp to create an end-to-end customer growth platform. By integrating Mailchimp's marketing automation with QuickBooks' financial management capabilities, Intuit aims to provide small and mid-sized businesses with a comprehensive suite of tools to manage their operations, from customer acquisition to financial planning.
This strategic move addresses key challenges faced by small businesses, such as customer acquisition and cash flow management, by leveraging the strengths of both platforms.
Intuit acquired Mailchimp for approximately $12 billion. The transaction was a combination of cash and Intuit common stock, making it one of the largest acquisitions in the marketing software industry. This significant investment underscores Intuit's commitment to expanding its offerings and supporting small businesses worldwide.
