MeridianLink Concludes Public Market Chapter with $1.6 Billion Acquisition

A significant transition unfolded for MeridianLink last Friday as the software company executed its permanent departure from the New York Stock Exchange. This move finalizes the investment journey for the firm’s shareholders, marking the conclusion of its publicly traded era.

Overwhelming Shareholder Approval Precedes Takeover

The path to this acquisition was set earlier in the week when shareholders cast their votes with a decisive majority. A resounding 59.2 million votes were recorded in favor of the sale, dwarfing the mere 17,000 votes against it. This overwhelming support represented a substantial 80.18 percent of all outstanding shares, making the final delisting a foregone conclusion.

In a straightforward settlement of the transaction, shareholders received a cash payment of $20.00 per share.

Leadership and Ownership Undergo Immediate Shift

Effective immediately, MeridianLink’s stock was delisted from the NYSE, and its trading symbol was permanently removed from market displays. This public market exit coincided with a comprehensive overhaul of the company’s governance. Multiple board members resigned from their positions, and a new slate of directors was appointed.

Should investors sell immediately? Or is it worth buying Meridianlink?

Concurrent with these changes, company insiders reported the sale of all their equity holdings, including unvested stock options. Post-transaction regulatory filings confirmed they held zero shares, signaling a complete transition in ownership.

A New Strategy Away from Public Scrutiny

The acquisition, valuing the company’s equity at $1.6 billion, presented a notable shift from the approximately $2.0 billion valuation discussed as recently as August. This final figure was confirmed in official SEC filings.

Now operating as a private entity under the ownership of Centerbridge Partners, with a minority stake held by Silversmith Capital Partners, MeridianLink is poised for a fundamental operational change. The company will no longer be obligated to issue quarterly earnings reports, navigate analyst expectations, or maintain public disclosures.

This newfound privacy is earmarked for strategic growth. The stated plan involves accelerated investment in artificial intelligence and data analytics. According to CEO Larry Katz, this move will allow the company to hasten its “digital lending trajectory” and fully unlock the “potential of its platform.” The future direction of MeridianLink will now be determined outside the view of public markets, free from the stock market indicators and analyst commentary that long influenced its course.