Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Stifel raised its price target on MeridianLink (NYSE:MLNK) to $20.00 from $18.00 while maintaining a Hold rating after the company announced an acquisition agreement. The company, with a market capitalization of $1.53 billion, has demonstrated solid financial health with a current ratio of 2.22, indicating strong liquidity position.
On Monday morning, MeridianLink announced it had reached an agreement to be acquired by Centerbridge Partners for $20.00 per share, representing a 26% premium to Friday’s closing price. While the company posted revenue growth of 5.15% in the last twelve months, InvestingPro data shows additional key metrics and insights available for deeper analysis.
The acquisition values the company at approximately 5.4 times enterprise value to revenue based on Stifel’s fiscal year 2026 estimates.
Stifel believes the $20.00 per share offer represents a fair outcome for MeridianLink and notes that the likelihood of a competing bid emerging is low.
The firm’s updated price target directly reflects the acquisition price announced in the agreement between MeridianLink and Centerbridge Partners.
In other recent news, MeridianLink, Inc. reported its Q1 2025 earnings, revealing revenue of $81.5 million, which slightly surpassed the forecast of $81.34 million. However, the company’s earnings per share (EPS) did not meet expectations, coming in at $0.09 compared to the anticipated $0.16. Additionally, MeridianLink has entered into a definitive agreement to be acquired by funds advised by Centerbridge Partners in an all-cash transaction valued at approximately $2 billion. This acquisition will provide MeridianLink shareholders with $20.00 per share in cash, reflecting a premium of approximately 26% over the closing price on August 8. In another development, MeridianLink announced the appointment of Denise Cox as its new Chief Customer Officer. Cox, who has over 20 years of experience in leading customer-facing functions at various technology companies, will oversee the company’s services, support, and customer success teams. These recent developments highlight significant changes and updates within MeridianLink.
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