Marlin Business Services to be acquired by HPS Investment Partners for $23.50 per share

• Marlin Business Services (NASDAQ:MRLN) inks agreement under which HPS Investment Partners, via its European Asset Value Funds, will acquire all of the Company's outstanding shares of common stock in an all-cash transaction for $23.50 per share.
• The acquisition price represents a 65% premium to the closing stock price on April 16, 2021.
• The Company’s Board of Directors has unanimously approved the transaction.
• The closing of the transaction is subject to various customary closing conditions, including regulatory and shareholder approvals and the requirement that Marlin Business Bank effect a “de-banking” and cease operations as a bank.
• Following the closing, Marlin will become a privately held company and shares of Marlin will no longer be listed on Nasdaq.
• Shares +1% premarket.

Comments

[Daniel Petersen]

Just sold. Bought at ~$9 per share. Thank Marlin

[MvGenius]

@daniel0512, if this thing is trading around 21.50 and selling for 23.50, wouldn't this be an easy 10% gain trade? I get selling and not waiting for the extra $2 on your end. But just looking at it makes me think it might not be a bad place to park some money.

[cloud_soon]

@MvGenius Subject to satisfaction of all closing conditions, which there can be no assurances will occur, the Company believes the transaction would likely close in the first quarter of 2022.

so there is an execution risk, plus opportunity cost.
Maybe that explain why there is a $2 gap

[SacredBiotech]

@MvGenius it's a small transaction so a lot of larger investment funds that deploy merger arbitrage strategies at scale aren't interested. Also the debanking risk is additional costs billed to equity buyout price. Currently budgeted for $8M costs could double, $16M making the cash purchase of common $22.85 vs. $23.50. Since there are no depositors just CD holders the debanking is easier than other transactions and Q1 2022 is a conservative date for expected regulatory clearance. I expect this transaction will close by end of year 2021 at the $23.50 buyout price. Concentrated ownership and insiders are incentivized to maximize the price here.