MeridianLink announces pricing of its IPO

MeridianLink is the latest mortgage technology company set to go public, announcing today the terms for its IPO launch expected next week.

The cloud-based loan origination and decision-making software provider will put out 12 million shares of common stock, with 10 million from the company itself and 2 million sold by existing stockholders. It’s also giving its underwriters a 30-day option to purchase an additional 1.8 million shares. The company first announced a proposed IPO on April 30.

The stock’s anticipated price range should fall between $24 and $26 per share when it starts trading at some point next week, according to the Securities and Exchange Commission S-1 document. It would raise between $331.2 million and $358.8 million if the share prices stay within that range.

Headquartered in Costa Mesa, Calif., MeridianLink experienced 30.5% annual revenue growth in 2020, going to $199.3 million from $152.7 million. It also saw a jump in net income, rising to $9.2 million from -$12.6 million in 2019.

MeridianLink had a busy year so far, additionally acquiring assets of TazWorks — a platform specializing in consumer reporting and background screening — in January. The terms of that deal were not disclosed.

Back in 2017, MeridianLink co-founder and former CEO Binh Dang tried to dissolve the company after ongoing legal battles with other executives. He petitioned the California Supreme Court, claiming that it was in the company’s best interests to voluntarily wind down operations.

MeridianLink plans to list on the New York Stock Exchange under the ticker symbol MLNK.

BofA Securities, Credit Suisse, and Barclays are the lead book-running managers. Citigroup Global Markets and Raymond James & Associates will be the book-running managers and BTIG, Wolfe Nomura Strategic Alliance, Stifel, Nicolaus & Company, William Blair, Blaylock Van, Roberts & Ryan Investments, Samuel A. Ramirez & Company, and Tigress Financial Partners are co-managers for the proposed offering.