• by Laurie Sullivan  @lauriesullivan, June 12, 2024

Yext, a digital performance platform to improve search strategies, announced the acquisition of Hearsay Systems, which provides digital services for the financial market.

Yext said it will pay $125 million, as well as up to an additional $95 million, if specific unnamed performance targets are achieved.

The acquisition combines Yext’s digital support with Hearsay engagement solutions across social media, websites, text, and voice.

Hearsay Systems supports about 260,000 financial advisors and agents. It ensures interactions meet regulatory and brand standards, with the idea of reducing risk and providing a 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, the companies said in a release.

This move puts Hearsay as a wholly owned subsidiary of Yext, with key Hearsay employees being incentivized through a $20 million bonus pool, according to some reports.

Yext stock fell after the market closed Monday after reporting it expects fiscal 2025 revenue of $394 million to $396 million, which is below the $400 million to $402 million the company previously projected for the year. The stock rebounded Wednesday morning, rising 4.28% to $5.24 after the market opened.