Yext will combine offerings and add in artificial intelligence technologies.
Yext, Inc., a digital presence company, is acquiring Hearsay Systems, a compliance provider for digital communications, for $125 million and will add Hearsay’s offerings to its own, officials say.
Yext will also augment the combined offerings with artificial intelligence (A.I.) technologies, officials add. Yext applies A.I. and machine learning technologies to customer engagement, automated workflows at scale, and cross-channel insights for data-driven decisions.
Hearsay could get an additional $95 million for achieving performance targets, officials say.
The combined offerings will give users access to multiple digital marketing channels via “one platform and leverage consolidated analytics and recommendations to improve performance across channels,” officials say.
“The acquisition will combine Yext’s industry-leading digital presence management platform with Hearsay Systems’ compliant engagement solutions across social media, websites, text, and voice,” officials say.
“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,” officials say. Hearsay’s customers include BlackRock, Charles Schwab, and New York Life.
“Our combined technology will bring instant value to our regulated customers, and we see an opportunity to bring these solutions to other industries,” says Michael Walrath, CEO and chair of the board at Yext, in a prepared statement.
Hearsay’s solutions integrate into customer relationship management (CRM) systems, “including a strong alliance with [CRM vendor] Salesforce, whose venture capital arm invested in the company in 2020. With CRM integration, brands can synchronize contact information, track client interactions, improve field productivity, orchestrate workflows, and uncover best practices,” officials say.
“We’ve only just begun to see the opportunities for A.I. 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 A.I.,” says Michael Boese, CEO of Hearsay Systems, in a prepared statement.
“The transaction 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,” according to Yext. “Wilson Sonsini Goodrich & Rosati, P.C. is serving as legal advisor to Yext, and Latham & Watkins LLP is serving as legal advisor to Hearsay Systems.”
Yext is based in New York, N.Y. Hearsay is headquartered in San Francisco with additional locations across North America, Europe, and Asia.
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