Update shared on05 Sep 2025
Analysts adjusted MeridianLink’s price target to the $20 acquisition offer from Centerbridge Partners—viewed as fair value—reflecting the deal’s strong board support, limited upside potential, and negligible likelihood of a higher bid.
Analyst Commentary
- Downgrades reflect MeridianLink’s agreement to be acquired by Centerbridge Partners for $20 per share, representing a $2B enterprise value.
- Analysts view the acquisition price as fair and close to perceived intrinsic value, limiting further upside for existing shareholders.
- The transaction is unanimously supported by MeridianLink’s board and shareholders, reducing the likelihood of competitive bids.
- The absence of a go-shop provision signals the company is unlikely to seek or receive a higher offer before the deal closes.
- Closing of the deal is expected in the second half of 2025, making near-term share price appreciation unlikely beyond the agreed acquisition price.
What's in the News
- Centerbridge Partners agreed to acquire MeridianLink for $1.6 billion ($20.00 per share in cash); post-acquisition, MeridianLink will become a private company and its shares will be delisted.
- The merger is subject to shareholder and regulatory approval, with approximately 55% of shares already committed to voting in favor; deal expected to close in the second half of 2025.
- MeridianLink suspended full-year 2025 financial guidance and canceled its scheduled earnings call due to the pending transaction.
- MeridianLink was dropped from multiple value-focused Russell indices, including Russell 2000, 2500, 3000, and Small Cap Comp Value Indices.
- MeridianLink and Jack Henry expanded their partnership, enabling Jack Henry to resell MeridianLink One platform solutions and further enhance digital lending and account opening services for banks and credit unions.
Valuation Changes
Summary of Valuation Changes for MeridianLink
- The Consensus Analyst Price Target remained effectively unchanged, at $20.00.
- The Net Profit Margin for MeridianLink has risen from 13.09% to 13.82%.
- The Future P/E for MeridianLink has fallen from 36.45x to 34.52x.
Disclaimer
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