COSTA MESA, Calif. - MeridianLink, Inc. (NYSE: MLNK), a software provider for financial institutions and consumer reporting agencies, has commenced a secondary public offering of 6 million shares by certain Thoma Bravo, L.P. funds. The shares offered will not benefit the company financially as they are being sold by the managing funds.
The offering, underwritten by J.P. Morgan Securities LLC, also includes an option for the purchase of up to an additional 900,000 shares within a 30-day period. The transactions will take place on the New York Stock Exchange in various forms, including direct sales, brokerage transactions, and negotiated deals, with prices based on market rates.
This sale is part of a shelf registration statement, effective as of January 8, 2024, following a filing with the Securities and Exchange Commission on December 29, 2023. Investors are advised to read the company's SEC filings for detailed information before investing.
The press release also contains forward-looking statements about the offering, warning that actual outcomes may differ due to various risks and market conditions. These statements are not guarantees of future performance and should not be relied upon as such.
The company has clarified that the press release does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction where such an offer or sale would be illegal.
This news article is based on a press release statement from MeridianLink, Inc.
In other recent news, MeridianLink, a prominent software provider for financial institutions, has seen significant leadership changes alongside a steady growth in its financial performance. The company recently appointed Elias Olmeta as its new Chief Financial Officer, succeeding former CFO Larry Katz, who has assumed the role of President. These changes follow the departure of Chris Maloof, former President-Go-To-Market.
MeridianLink reported a year-over-year revenue growth in its second quarter of 2024, with GAAP revenue reaching $78.7 million, marking a 4% increase from the previous year. The company also returned $74.3 million to shareholders through stock repurchases. For the third quarter, the company anticipates GAAP revenue to range between $78 million and $81 million, with full-year projections of $312 million to $318 million.
Notably, MeridianLink has formed a successful partnership with Conductiv, contributing to customer ROI through platform implementation. Despite the leadership changes, the company's go-to-market strategy remains unaffected. These recent developments underscore MeridianLink's resilience and commitment to growth, even amidst industry challenges.
InvestingPro Insights
As MeridianLink, Inc. (NYSE: MLNK) navigates the secondary public offering of shares by Thoma Bravo, L.P. funds, the company's recent performance and market valuation offer key insights for potential investors. According to InvestingPro data, MeridianLink currently holds a market capitalization of approximately $1.74 billion. Despite a challenging environment for tech stocks, the company has experienced a 29% price increase over the last six months, reflecting investor optimism about its future prospects.
One notable InvestingPro Tip is that management has been actively repurchasing shares, signaling confidence in the company's value and a commitment to shareholder returns. This is particularly relevant as the secondary offering will not dilute existing shareholders, since the shares are being sold by the managing funds and not by the company itself. Additionally, MeridianLink's liquid assets surpass its short-term obligations, suggesting a solid financial position for dealing with immediate liabilities.
Investors should be aware, however, that MeridianLink is trading at high EBIT and EBITDA valuation multiples, which may indicate a premium price relative to its current earnings. Despite this, analysts predict that the company will turn profitable within the year, which could justify the valuation if earnings expectations are met. It's also important to note that the company does not pay a dividend, focusing instead on growth and share repurchases.
For a more comprehensive analysis and additional InvestingPro Tips, investors can explore the full suite of insights on InvestingPro, which includes seven more tips related to MeridianLink's financial health and market performance.
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