Form 4: Thoma Bravo UGP Sells 6 Million Shares of MeridianLink, Inc. (MLNK) at $21.05 per Share

Thoma Bravo UGP, LLC, along with affiliated funds, disposed of 6,000,000 shares of MeridianLink, Inc. at a price of $21.05 per share on September 30, 2024.

Summary

• On September 30, 2024, Thoma Bravo UGP, LLC sold 6,000,000 shares of MeridianLink, Inc. (MLNK) at $21.05 per share.
• The transaction was reported on a Form 4 filing with the SEC.
• Following the transaction, Thoma Bravo UGP, LLC, through its affiliated funds, still beneficially owns 29,582,388 shares of MeridianLink, Inc.
• The shares are held indirectly through various Thoma Bravo Discover Funds.
• Thoma Bravo UGP, LLC disclaims beneficial ownership of the shares except to the extent of its pecuniary interest.

Sentiment

Score: 5

Explanation: Neutral sentiment. The sale is a standard transaction for a major shareholder, but could create some short term downward pressure on the stock.

Negatives

• Thoma Bravo UGP, LLC, a significant shareholder, has reduced its stake in MeridianLink, Inc. by selling 6,000,000 shares.

Risks

• Further sales by Thoma Bravo UGP, LLC could put downward pressure on the stock price of MeridianLink, Inc.

Industry Context

Private equity firms like Thoma Bravo often take companies public and then gradually reduce their ownership stake over time. This sale could be part of a planned exit strategy.

Comparison to Industry Standards

• It's common for major shareholders, especially private equity firms, to periodically sell off portions of their holdings after a company goes public.
• Similar transactions can be seen with other companies backed by private equity firms like Vista Equity Partners or Silver Lake Partners, where they gradually reduce their stakes over time.
• The impact on the stock price often depends on the size of the sale relative to the company's market capitalization and trading volume.

Stakeholder Impact

• Shareholders may experience short-term price volatility due to the sale.
• The company's operations are unlikely to be directly affected by this transaction.

Key Dates