Marlin Business Services Corp., a provider of capital solutions to small businesses, will be acquired by an investment firm in a deal that could be worth more than $281 million.
HPS Investment Partners LLC, through its European Asset Value Funds, will acquire the Mount Laurel-based company for $23.50 per share, which represents a 65% premium over the closing price April 16, according to a news release.
“We are pleased to have reached an agreement with HPS for the sale of Marlin, which will deliver significant value to our shareholders,” CEO and President Jeffrey A. Hilzinger said in a prepared statement. “After successfully executing the transformation of Marlin into a broad provider of credit products and services to small businesses over the last five years, and effectively navigating through the uncertainties of the pandemic, we believe that this transaction reflects Marlin’s intrinsic value and is the best opportunity to maximize shareholder value.”
The transaction is expected to close in the first quarter of 2022, pending customary approvals and conditions. Marlin would become a privately held company at that point. The board of directors has unanimously approved the transaction, Marlin noted.
J.P. Morgan served as Marlin’s exclusive financial adviser on the transaction, while Mayer Brown served as legal counsel. Skadden, Arps, Slate, Meagher & Flom LLP served as HPS’ legal counsel.