Prompting this move is the San Francisco-based company’s acquisition of Noddle, a startup headquartered in the U.K. that offers users free access to their credit report. Credit Karma made the purchase from TransUnion, which received Noddle as a part of its purchase of CallCredit for $1.4 billion in April of this year. The financial terms of the agreement are not disclosed but it appears to be purely cash-based; TransUnion is not taking any stake in Credit Karma. The deal is expected to close later this year or early next year.
“Noddle’s similar mission and history as the first provider of free credit information in the U.K. made this a clear decision for Credit Karma,” said Credit Karma’s VP of International, Valerie Wagoner. “We’re confident our depth of experience working across data providers along with banks and lenders will accelerate the number of services we provide to help consumers make the most of their money.”
Noddle’s 35+ employees will join the Credit Karma workforce of more than 700. Credit Karma has “immediate plans” to expand its team in the U.K., and aims to “more than double” the U.K. team– which will be based in London and Leeds– over the next year. The acquisition includes Noddle’s employees, technology, and clients– more than 4 million of them. This number boosts Credit Karma’s existing North American user base which currently sits at more than 85 million members.
Founded in 2007, Credit Karma CEO Ken Lin demonstrated the company’s platform at FinovateSpring 2009, when the company had just five employees. Since then, Credit Karma has finalized five acquisitions, making today’s purchase of Noddle its sixth. After receiving a $500 million secondary investment round in March, the company boosted its valuation to $4 billion.