(Reuters) -U.S. financial software provider MeridianLink said on Monday it would be acquired by investment firm Centerbridge Partners in a $2 billion deal, taking it private roughly four years after its New York debut.
Optimism around potential rate cuts and easing 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.
Last week, Blackstone clinched a $6.5 billion deal for energy data and analytics provider Enverus.
MeridianLink shareholders will receive $20 apiece in cash for each share held, implying a 26% premium to the stock’s last close.
Shares of the Irvine, California-based company jumped 24.6% to $19.79 in premarket trading. They have lost 23% this year, as of last close.
Founded in 1998, MeridianLink powers digital lending and account opening for financial institutions. It also provides data verification solutions for credit bureaus.
The company caters to nearly 2,000 community financial institutions and reporting agencies, including BankFirst and Financial Center First Credit Union.
“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 to expand and deepen client relationships and drive their growth,” said Centerbridge’s Jared Hendricks and Ben Jaffe.
MeridianLink’s revenue rose 8% to $84.6 million during the three months ended June 30, while net loss narrowed to $3 million.
In May, the company had announced its president, Larry Katz, would takeover as the CEO in October.
Holders of roughly 55% of MeridianLink’s shares have agreed to vote in the favor of the transaction, which is expected to close in the second half of 2025.
Centerview Partners and J.P. Morgan are advisers to MeridianLink on the deal, while Goldman Sachs is advising Centerbridge.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)
