COSTA MESA, Calif. - MeridianLink, Inc. (NYSE: MLNK), a prominent software platform provider for financial institutions and consumer reporting agencies, has set the public offering price for its secondary common stock offering. On February 6, 2024, the company announced the pricing at $19.00 per share, which is an increase from the initially announced offering size, now totaling 6,906,015 shares.
The offering by certain existing stockholders, known as the Selling Stockholders, does not include any proceeds going to the company itself. Instead, the transaction consists of 4,500,000 shares offered to the public and 2,406,015 shares repurchased by the company, a move termed the Stock Repurchase. MeridianLink plans to use its existing cash reserves to fund this repurchase.
The underwriters have been granted a 30-day option to purchase up to an additional 675,000 shares at the public offering price, with the usual underwriting discounts and commissions applied. The expected closing date for the offering is February 9, 2024, subject to standard closing conditions.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the offering as book-running managers. Other financial institutions, including BofA Securities, Barclays, and Raymond James & Associates, Inc., are also managing the book, while several other firms are serving as co-managers.
The offering is made under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) on December 29, 2023, and which became effective on January 8, 2024. All relevant documents, including a prospectus supplement and the accompanying base prospectus, are available on the SEC's website or directly from the underwriters.
The information reported is based on a press release statement by MeridianLink, Inc.
InvestingPro Insights
As MeridianLink, Inc. (NYSE: MLNK) embarks on its secondary common stock offering, the financial community is closely monitoring the company's performance metrics and market valuation. According to InvestingPro data, MeridianLink has a market capitalization of approximately $1.73 billion and is currently trading at a price to earnings (P/E) ratio of -96.97, reflecting market skepticism about its current profitability. The P/E ratio, when adjusted for the last twelve months as of Q3 2023, stands at -120.78, which may raise concerns about the company's valuation relative to its earnings.
Despite the challenging P/E ratios, there are positive indicators in MeridianLink's financial landscape. The company has experienced a revenue growth of 6.42% over the last twelve months leading up to Q3 2023, and its gross profit margin stands at a robust 69.14%, suggesting that it maintains a strong ability to retain earnings after the cost of goods sold is accounted for. Additionally, an InvestingPro Tip indicates that analysts are optimistic about the company's future, with net income expected to grow this year and two analysts having revised their earnings estimates upwards for the upcoming period.
Investors considering participating in the stock offering may also find encouragement in the fact that MeridianLink's liquid assets exceed its short-term obligations, providing a cushion for operational needs. This financial stability is complemented by a strong return over the last three months, with a price total return of 19.34%. Yet, it's worth noting that the company does not pay a dividend, which might be a consideration for income-focused investors.
For those seeking more in-depth analysis and additional InvestingPro Tips, such as insights on the company's EBITDA valuation multiple or profitability projections, MeridianLink's detailed financials and expert forecasts are available on InvestingPro. Subscribers can use the coupon code SFY24 for an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription. There are a total of 9 additional InvestingPro Tips listed for MeridianLink, providing a comprehensive outlook on the company's financial health and market potential.
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