Yext, a leading digital presence platform for multi-location brands, announced that it has entered into a definitive agreement to acquire Hearsay Systems, a global leader in digital client engagement for financial services, for $125 million and up to an additional $95 million if certain performance targets are achieved.
This deal will combine Yext’s industry-leading digital presence management platform with Hearsay Systems’ compliant engagement solutions across social media, websites, text, and voice. And this strategic move will utilize the strengths of both companies’ technology to provide a single digital marketing platform to power the customer journey and enable brands to convert prospects into loyal customers faster.
Leading financial firms depend on Hearsay System’s compliance-driven platform to scale their reach, optimize customer engagements, grow their business, and deliver solid client service. And Hearsay Systems helps 260,000 advisors and agents ensure all interactions meet regulatory and brand standards to reduce risk while providing a scalable way to manage customer engagement.
Combined with Yext’s suite of products and AI technology, brands can access more channels in one platform, and leverage consolidated analytics and recommendations to improve performance across channels.
Hearsay Systems’ solutions integrate into CRM systems, including a strong alliance with Salesforce – whose venture capital arm invested in the company in 2020. And with CRM integration, brands can synchronize contact information, track client interactions, improve field productivity, orchestrate workflows, and uncover best practices.
The deal is expected to close in the second half of Yext’s fiscal year 2025, ending January 31, 2025, subject to the satisfaction of customary closing conditions, including required regulatory approvals.
Wilson Sonsini Goodrich & Rosati is serving as legal advisor to Yext, and Latham & Watkins is serving as legal advisor to Hearsay Systems.
KEY QUOTES:
“Customers are increasingly looking to consolidate digital marketing channels into one platform to increase efficiency, improve performance, and reduce costs. Yext already provides access to more channels than any other provider. With Hearsay Systems, we’ll provide even more ways for brands to connect with their customers one-to-one. Our combined technology will bring instant value to our regulated customers, and we see an opportunity to bring these solutions to other industries. Yext is focused on solving customer problems, and with Hearsay, we can bring the innovation they need faster.”
- Michael Walrath, CEO and Chair of the Board at Yext
“Hearsay Systems has a long history of innovation for financial services, building transformational client engagement solutions and successfully bringing AI to a highly regulated industry. We are excited to provide an expanded solution set to our customers and introduce Hearsay solutions to customers across additional industries. We’ve only just begun to see the opportunities for AI in digital marketing. By combining our resources and technology with Yext, we’ll be able to deliver even more value to brands as they look to leverage the power of AI.”
- Michael Boese, CEO of Hearsay Systems
