MeridianLink's 15min chart triggers Bollinger Bands expansion downward, bearish Marubozu pattern.

Based on the 15-minute chart, MeridianLink's recent price action has triggered an expansion of Bollinger Bands downward, accompanied by a bearish Marubozu candlestick pattern on August 19, 2022, at 12:00. This indicates that the market trend is being driven by sellers, who are currently in control, and suggests that bearish momentum is likely to persist.

MeridianLink, Inc. (NYSE: MLNK), a financial technology company specializing in cloud-based digital lending, account opening, and data verification software solutions, has been acquired by Centerbridge Partners in an all-cash transaction valued at approximately $2 billion. The acquisition, announced on August 8, 2022, is expected to close in the second half of 2025, subject to shareholder approval and regulatory clearances [1].

Centerbridge Partners, a private equity firm managing approximately $43 billion in assets, will pay MeridianLink shareholders $20.00 per share, representing a 26% premium over the closing price on August 8. The acquisition comes at a strategic time, with MeridianLink's stock trading near its 52-week low of $15.49 [1].

The acquisition will see MeridianLink remain headquartered in Irvine, California, and continue its operations as a private company. The company's strong liquidity position, indicated by a healthy current ratio of 2.22, suggests solid financial positioning for this transition [1]. Centerbridge Partners plans to accelerate product innovation and enhance customer experiences post-acquisition [1].

To finance the acquisition, a group of private credit firms, including Goldman Sachs Asset Management, Blackstone Inc., Ares Management Corp., Blue Owl Capital Inc., and Antares Capital, are providing nearly $1.4 billion in loans. The loan is set to be split equally among lenders and includes a term loan of $960 million, a delayed-draw term loan of $250 million, and a $150 million revolving credit facility. The loan is offered at 4.75 percentage points over the benchmark and will mature in seven years [2].

MeridianLink's recent financial performance has been mixed. In Q1 2025, the company reported a revenue of $81.5 million, slightly exceeding expectations, but earnings per share (EPS) fell short of forecasts. The company's net income is expected to grow this year, with analysts forecasting a return to profitability [1].

The acquisition comes as the market for mergers and acquisitions has been subdued, with private equity firms seeking new deals. The dearth of deals has led to increased competition between banks and private credit firms for acquisition financing [2].

The acquisition of MeridianLink by Centerbridge Partners signals a strategic move in the financial technology sector. The integration of MeridianLink's software solutions with Centerbridge's expertise in private equity, private credit, and real estate investments could lead to significant innovations and growth opportunities. However, the market's reaction to the acquisition and the subsequent integration will be crucial in determining its long-term success.

References:
[1] https://in.investing.com/news/company-news/centerbridge-to-acquire-meridianlink-in-2-billion-allcash-deal-93CH-4956048
[2] https://www.bloomberg.com/news/articles/2025-08-14/centerbridge-taps-1-4-billion-of-private-debt-for-meridianlink