MeridianLink's 15min chart shows KDJ Death Cross and Bearish Marubozu signals.

MeridianLink's 15-minute chart has exhibited a significant bearish trend, as indicated by the KDJ Death Cross and the presence of a Bearish Marubozu candlestick pattern at 08/20/2025 11:45. This suggests that the momentum of the stock price is shifting towards a downward trajectory, with a potential for further decreases in the future. The market is currently dominated by sellers, and it is likely that the bearish momentum will continue.

Centerbridge Partners has secured nearly $1.4 billion in private debt to support its $2 billion acquisition of financial software firm MeridianLink Inc. [1]. The financing is being provided by Goldman Sachs Asset Management (GSAM), Blackstone, Ares Management, Blue Owl Capital, and Antares Capital, with the loan package split equally among the lenders [1]. The loan includes a $960 million term loan, a $250 million delayed-draw term loan, and a $150 million revolving credit facility, offered at a margin of 475 basis points over the benchmark and with a maturity of seven years [1].

MeridianLink, which provides digital solutions to financial institutions and consumer reporting agencies, is expected to become a private entity following the acquisition. The transaction reflects the growing role of private credit in large-cap buyouts as competition with traditional bank lenders intensifies in a subdued M&A landscape [2].

Recent weeks have seen a pickup in private equity-backed financings, with Thoma Bravo turning to private credit for a $3 billion debt deal to refinance Flexera Software and Blackstone and GSAM leading a nearly $1 billion deal for Advent International’s purchase of Israeli software provider Sapiens International Corp. [2].

MeridianLink's stock has exhibited bearish indicators on its 15-minute chart, with a KDJ Death Cross and a Bearish Marubozu appearing on August 14, 2025, at 13:45. These technical signals suggest a shift in momentum towards the downside and a potential further decrease in stock price [3]. Despite strong earnings in Q2 2025, the stock has declined by about 23.1% since the beginning of the year, indicating investor concern about the company's future prospects [3].

The acquisition price reflects a premium of around 26% over the closing price of MeridianLink shares on August 8, 2025. The transaction offers shareholder liquidity but raises questions about operational continuity and valuation [4]. Investors should closely monitor MeridianLink's upcoming earnings release and the progress of the Centerbridge acquisition to gauge the company's financial health and future prospects [3].

MeridianLink reported net revenues of $84.6 million for Q2 2025, marking a 7.5% year-over-year (YoY) increase from $78.7 million in the same period last year. Despite the revenue growth, the company reported a net loss of $3.0 million, an improvement from the net loss of $9.7 million in the prior year [3]. The company's core lending software revenue grew by 12% YoY to $68.7 million, driven by new customer signings and cross-sell activity among existing clients. Subscription revenue, which forms the base of MeridianLink's predictable income stream, accounted for 84% of total GAAP revenue, totaling $71.1 million. This recurring model ensures stable cash flows and high customer retention [3].

The company's adjusted EBITDA rose to $38.4 million, increasing the adjusted EBITDA margin to 45%, up from 40% in the previous year. Free cash flow also improved, increasing by nearly 38% to $17.1 million. The company's cash and equivalents stood at $91.1 million at the end of the quarter, indicating strong cash generation [3].

The acquisition by Centerbridge Partners is seen as a pivotal step in maximizing shareholder value and advancing strategic goals. However, the company faces challenges that need to be addressed to improve its bottom line, including its net loss position, dependency on the financial institution industry, and high interest expenses [3]. Opportunities for growth include market expansion and targeting emerging financial services providers and international markets.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-14/centerbridge-taps-1-4-billion-of-private-debt-for-meridianlink
[2] https://pe-insights.com/goldman-blackstone-and-ares-lead-1-4bn-financing-for-centerbridges-meridianlink-deal/
[3] https://www.ainvest.com/news/meridianlink-15-min-chart-triggers-kdj-death-cross-bearish-marubozu-signals-2508/
[4] https://www.ainvest.com/news/meridianlink-mlnk-swot-analysis-revenue-growth-challenges-2508/