Thoma Bravo, a significant shareholder in MeridianLink, Inc. (NYSE:MLNK), has sold a substantial portion of its holdings in the company. According to a recent SEC filing, Thoma Bravo disposed of 650,000 shares of MeridianLink at a price of $21.05 per share, amounting to a total transaction value of approximately $13.68 million.
Following this transaction, Thoma Bravo retains ownership of 28,932,388 shares in MeridianLink. The shares are distributed among various funds managed by Thoma Bravo, including the Thoma Bravo Discover Fund, L.P., Thoma Bravo Discover Fund A, L.P., and others, as detailed in the filing.
This sale was executed on October 18, 2024, and reflects Thoma Bravo's ongoing management of its investment portfolio.
In other recent news, MeridianLink has seen noteworthy developments in its financial performance and corporate structure. Citi maintained a Neutral rating on MeridianLink, raising the price target to $22 based on an updated cash flow analysis and improved market sentiment. This follows MeridianLink's recent financial disclosures and earnings for the quarter ending June 2024.
MeridianLink has also announced a secondary public offering of 6 million shares managed by Thoma Bravo, L.P. funds, underwritten by J.P. Morgan Securities LLC. It should be noted that the offering will not benefit MeridianLink financially as the shares are being sold by the managing funds.
In the leadership realm, Elias Olmeta has been appointed as the new Chief Financial Officer, succeeding former CFO Larry Katz, who has assumed the role of President. In terms of financial performance, MeridianLink reported a 4% year-over-year revenue growth in the second quarter of 2024, with a GAAP revenue reaching $78.7 million. 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.
Lastly, MeridianLink has formed a successful partnership with Conductiv, which contributes to customer ROI through platform implementation. These are just a few of the recent developments at MeridianLink.
InvestingPro Insights
To complement the news of Thoma Bravo's significant share sale in MeridianLink, Inc. (NYSE:MLNK), recent data from InvestingPro offers additional context for investors.
As of the latest quarter, MeridianLink's revenue stood at $307.56 million, with a modest growth of 4.31% over the last twelve months. This growth, while positive, may be a factor in Thoma Bravo's decision to reduce its stake, possibly seeking opportunities with higher growth potential.
Interestingly, an InvestingPro Tip indicates that management has been aggressively buying back shares. This corporate action contrasts with Thoma Bravo's recent sale and could signal management's confidence in the company's value or an effort to support the stock price.
Another relevant InvestingPro Tip reveals that MeridianLink's liquid assets exceed short-term obligations, suggesting a strong balance sheet position. This financial stability might provide some reassurance to remaining shareholders following the large stake sale by Thoma Bravo.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for MeridianLink, providing a deeper understanding of the company's financial health and market position.
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