Intuit and Credit Karma reach deal with DOJ to participate in $ 7.1 billion merger

Actions of Intuit Inc. INTU,
+ 1.43%
rose 1.7% in morning trading, after the parent company of tax preparation software TurboTax said it had reached an agreement with the Department of Justice (DOJ) over its proposed acquisition $ 7.1 billion from Credit Karma, in which the Karma Tax credit business will be sold to Square Inc. SQ,
+ 4.71%
to help allay antitrust concerns. The agreement with Square is conditional upon the completion of the Intuit-Credit Karma merger. As part of the agreement with Square, Intuit and Credit Karma will commit to providing certain bridging services. Shares of Square were up 3.0% in morning trading. “We are pleased to have cleared this necessary regulatory review with the DOJ and appreciate their careful review of this transaction,” said Sasan Goodarzi, Managing Director of Intuit. “Consumers will continue to benefit from the Credit Karma Tax product as part of Square.” Intuit shares are up 33.9% year-to-date, while Square shares are up 234.0% and the S&P 500 SPX,
-0.27%
gained 12.2%.