April 19th, 2021 saw Marlin Business Services Corp. (MRLN) stock prices hit USD$20.99 with a monumental 47.41% increase.
HPS Acquires MRLN
This massive surge was hot on the heels of the announcement that MRLN and HPS Investment Partners LLC had entered into a definitive agreement. The nationwide provider of capital solutions to small businesses will see all of its common stock shares get bought out by HPS’s European Asset Value Funds. The agreement prices each share at USD$23.50 per share, which is a 65% premium over the USD$14.24 that MRLN stock prices closed at on April 16th, 2021.
What is HPS?
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HPS boasts USD$68 billion worth of assets that the leading global investment firm manages as of March 2021. Among the many strategies across a capital structure that HPS manages, the European Asset Value Funds (EAVF) platforms rake in almost USD$4 billion in equipment leases on the EAVF leasing platforms.
Conditions of Acquisition
The MRLN Board of Directors unanimously voted in favor of approving the transaction, and completion is expected for Q1 2022. Aside from the standard regulatory and shareholder approvals, an additional condition is the de-banking of Marlin Business Bank wherein it ceases its banking operations. Should the costs of de-banking exceed USD$8 million, the aggregate considerations paid to MRLN shareholders by HPS may be reduced.
What does this Mean for Shareholders?
The current CEO of MRLN has emphasized the importance of the creation of significant shareholder value throughout the transaction process. He is confident that the HPS acquisition of MRLN is the most effective route to maximizing shareholder value for MRLN. Having spent more than five years providing credit products and services to small businesses, MRLN hopes to continue serving their partners and clients with the provision of fast and flexible financing solutions in accordance with their needs.
MRLN Financial Report Looks Promising
In the disclosure of their financial reports for Q4 2020, MRLN showed improvements in many key fiscal areas when compared with numbers from Q4 of 2019. With net income having gone from USD$2.7 million in Q4 2019 to USD$15.3 million in Q4 of 2020, we get an idea of the kind of growth MRLN experienced even during the tumultuous pandemic.
The Future for MRLN and its Shareholders
Following the closing, MRLN will cease to be listed on the Nasdaq Capital Market, seeing how it will go from being a public entity to a privately held company. The future looks bright for MRLN, and many investors are capitalizing on the massive surge in MRLN stock prices.