Software firm MeridianLink to go private in $2 billion deal with Centerbridge
Optimism around potential rate cuts and easing economic uncertainty amid progress on trade deals have laid the groundwork for a pickup in private-equity buyouts. Dealmaking appetite for software businesses has also remained robust this year.
MeridianLink shareholders will receive $20 apiece in cash for each share held, implying a 26 per cent premium to the stock's last close. Shares of the Irvine, California-based company, which powers digital lending and account opening for financial institutions, jumped 24 per cent in afternoon trading.
"Industry consolidation has been a key theme in fintech and we view the multiple as reasonable," said William Blair analyst Cristopher Kennedy.
"We have long held the belief that MerdianLink would represent an attractive asset as the company generates strong EBITDA margins at around 40 per cent."
The deal also highlights the growing trend of money managers seeking strategic control of technology companies driving digital transformation in financial services.
Centerbridge is also not new to the fintech space, having acquired bank tech firm CSI in a $1.6 billion deal in 2022.
"As the pace of change across the finance and tech sectors continues to accelerate, MeridianLink is uniquely positioned to help financial institutions enhance their digital lending and credit reporting capabilities," said Centerbridge's Jared Hendricks and Ben Jaffe.
Founded in 1998, MeridianLink caters to nearly 2,000 community financial institutions and reporting agencies. Its revenue rose 8 per cent to $84.6 million during the three months ended June 30, while net loss narrowed to $3 million.
Centerview Partners and J.P. Morgan are advisers to MeridianLink on the deal, which is expected to close in the second half of 2025. Goldman Sachs is advising Centerbridge.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
14 minutes ago
- CNA
Trump signs order extending China tariff truce by 90 days, White House says
WASHINGTON: US President Donald Trump has signed an executive order extending a tariff truce with China by another 90 days, the White House said on Monday (Aug 11), hours before steep tariff increases were due to take effect. The move prevents US tariffs on Chinese goods from rising to 145 per cent and Chinese tariffs on US goods from climbing to 125 per cent, levels trade experts said would have amounted to a virtual embargo. AVERTING A DEADLINE A day earlier, Trump had urged Beijing to quadruple purchases of US soybeans but gave a noncommittal answer when asked if he would extend the lower tariff rates. 'We'll see what happens,' Trump told reporters at the White House. 'They've been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself.' Imports from China are currently subject to 30 per cent tariffs, made up of a 10 per cent base rate and 20 per cent in fentanyl-related duties imposed earlier this year. China had matched the de-escalation, lowering its tariffs on US imports to 10 per cent. NEGOTIATIONS CONTINUE Beijing and Washington agreed to the 90-day truce in May after talks in Geneva, with further discussions held in Stockholm in July. Those meetings did not produce a formal extension until Monday's order. Kelly Ann Shaw, a former White House trade official under Trump, said the president often pushed decisions to the last minute and predicted the truce could be extended again. 'The whole reason for the 90-day pause in the first place was to lay the groundwork for broader negotiations,' she said. Ryan Majerus, a former US trade official now with King & Spalding, said the extension would 'undoubtedly lower anxiety on both sides' and give time to address long-standing trade concerns. WIDER ECONOMIC ISSUES The White House did not elaborate beyond Trump's remarks, and the Treasury Department and US Trade Representative's Office declined to comment.
CNA
4 hours ago
- CNA
Paramount to become exclusive US home for UFC in $7.7 billion rights deal
Skydance-owned Paramount will become the exclusive U.S. home of Ultimate Fighting Championship under a seven-year media rights deal valued at about $7.7 billion, marking the first major strategic move by the merged media giant under new CEO David Ellison. Starting next year, Paramount+ will carry the complete U.S. slate of 13 numbered UFC events and 30 Fight Nights. UFC, owned by TKO Group Holdings, will also have select numbered cards simulcast on Paramount's CBS broadcast network, the companies announced on Monday. The deal builds on Ellison's commitment to increase investment in high-quality exclusive content, which he had called the "single biggest driver of subscriber growth". Sports content, has become the cornerstone of media strategy, as cord-cutting accelerates, with rivals such as Netflix and Disney also striking similar deals to strengthen their offerings. Netflix secured a $5 billion, 10-year global deal for WWE Raw from 2025 and added two NFL Christmas Day games. Disney's ESPN extended rights with NFL, NHL, MLB and College Football Playoff. "The addition of UFC's year-round must-watch events to our platforms is a major win," Ellison said, calling UFC a "global sports powerhouse". Paramount will pay an average of $1.1 billion a year to TKO Group and include events at no extra cost to subscribers, shifting away from UFC's traditional pay-per-view model. It may seek UFC rights in other markets as they come up for bidding. "They are not playing for near-term earnings outperformance, they are trying to create a long-term imprint on the future of the media industry to 'win,'" LightShed Partners analysts said. UFC stages about 43 live events a year, reaching roughly 100 million U.S. fans and nearly 950 million households globally. Its slate includes marquee-numbered card events like UFC 300, and weekly Fight Nights. Paramount and Skydance completed their $8.4 billion merger last week, capping a drawn-out deal process marked by political scrutiny and shareholder concerns.
CNA
4 hours ago
- CNA
ESPN, Fox to bundle upcoming streaming services in new sports-heavy deal
Upcoming streaming services of ESPN and Fox will be bundled for $39.99 per month starting October 2, the companies said on Monday, offering sports fans a wide range of major events including the NFL and NBA at a discounted rate. The bundle is the first significant deal involving major sports rights holders after Disney, Fox and Warner Bros Discovery abandoned plans to launch their live sports joint venture, Venu Sports, after it ran into substantial legal opposition. Media companies are pairing their streaming services to offer bundled deals and boost customer stickiness, as viewers face steep price hikes and an overload of choice. The new package brings together Fox One, which offers Fox's sports, news, and entertainment content, and ESPN's new direct-to-consumer network, featuring professional and college football and basketball games. Both platforms are launching on August 21. "We continue to look for opportunities to streamline the user experience, especially for the ultimate sports fan," said Tony Billetter, senior vice president, strategy and business development at Fox Direct to Consumer.
