Yext Acquires Hearsay Systems: A New Era in Digital Marketing

Yext to Acquire Hearsay Systems

The announcement of Yext's acquisition of Hearsay Systems is an important milestone that will fundamentally impact digital consumer interaction. The total transaction value is approximately $220 million. Thanks to this strategic purchase, a new era in online consumer interaction is on the horizon, merging Yext's digital management platform with Hearsay's compliant engagement solutions. 

Background information

Yext overview: Founded in 2006, Yext is a platform for managing a brand's online presence. They work with companies with multiple physical locations and assist them in providing consumers with consistent, accurate, and engaging experiences everywhere they go. Yext consolidates the administration of location data, listings, and content to guarantee that users always have access to up-to-date information, no matter where they search. Key features include automated listing updates, AI-powered search experiences, dynamic content generation, and seamless integration with existing marketing solutions.

Hearsay Systems overview: Hearsay Systems is a financial services-specific digital customer interaction platform founded in 2009. They give financial advisors the tools to connect with clients online, expand their companies, and manage their social media accounts, websites, and email campaigns. The platform offers tailored solutions for asset management, wealth management, banking, and other industries through predictive analytics, which recommend client interactions based on their online activity.

Details of the acquisition

Yext announced the acquisition of Hearsay Systems on June 10, 2024, for $125 million, with an additional $95 million in future funding. The final phase of Yext's fiscal year 2025, which concludes on January 31, 2025, is anticipated to see the transaction through to completion. The goal of this strategic alliance is to create a digital marketing platform that is both powerful and easy to use while also increasing client engagement.

As a result of the acquisition, Hearsay Systems' compliance engagement solutions for social media, websites, text, and voice will become part of Yext's market-leading digital presence management platform. By consolidating customer journey management into one platform, this strategic decision will help businesses more effectively turn prospects into loyal customers.

Yext CEO Michael Walrath emphasized the significance of this acquisition, stating, “Customers are increasingly looking to consolidate digital marketing channels into one platform to increase efficiency, improve performance, and reduce costs. With Hearsay Systems, we'll provide even more ways for brands to connect with their customers.”

Hearsay Systems CEO Michael Boese highlighted the benefits of the merger, saying, "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."

What to Expect? 

Integration Plans: Yext plans to integrate Hearsay’s technology and team, focusing on creating seamless customer experiences. This integration is anticipated to yield new AI-driven solutions to set a new standard in customer engagement and regulatory compliance.
Expected Innovations: Yext and Hearsay's partnership will allow businesses to use a single platform for additional channels, with integrated insights and suggestions to boost performance across different channels.

Concluding Remarks

The acquisition of Hearsay Systems by Yext marks a significant milestone in the digital marketing landscape. The two companies promise to deliver innovative solutions and enhance customer engagement. As they embark on this exciting journey together, the industry eagerly anticipates the transformative impact of their combined technologies.