Strategic Merger: Yext Takes Over Hearsay Systems to Unify Digital Marketing Solutions

Multi-Million Dollar Deal Reshapes Customer Engagement Landscape

Yext, Inc. (NYSE: YEXT), a dominant force in digital presence management for multi-location brands, has announced a definitive agreement to integrate Hearsay Systems, a major player in compliance-driven digital engagement for the financial sector. The transaction values Hearsay at $125 million upfront, with an additional $95 million contingent on hitting specific performance milestones over time.

This strategic integration marks a significant move to consolidate fragmented digital marketing channels into a unified platform. By combining Yext’s robust digital presence infrastructure with Hearsay Systems’ regulated engagement capabilities—spanning social channels, web properties, text communications, and voice interactions—the merged entity will enable brands to orchestrate seamless customer journeys from initial contact through lasting loyalty.

Addressing Market Demand for Channel Consolidation

Brands increasingly face pressure to streamline their digital marketing operations. The ability to access multiple communication channels through a single interface, coupled with unified analytics, has become a competitive advantage. Michael Walrath, Yext’s CEO, highlighted this momentum: “Customers want to consolidate their digital channels into one solution to boost efficiency, enhance performance, and cut operational costs. Yext already connects to more channels than competitors. By bringing Hearsay Systems into the fold, we’re expanding those capabilities and enabling deeper one-to-one customer connections.”

The financial services sector has proven particularly receptive to Hearsay Systems’ approach. The company’s platform serves over 260,000 advisors and agents across institutions like BlackRock, Charles Schwab, and New York Life. Its compliance-first architecture ensures that all client interactions meet regulatory requirements and brand standards—a critical necessity in regulated industries where communication lapses carry significant legal and reputational risks.

Leveraging AI and CRM Integration at Scale

Beyond channel expansion, the merger emphasizes AI-driven capabilities. Hearsay Systems’ AI has been specifically trained to operate within highly regulated environments, a competitive edge that becomes more valuable as financial institutions and other sectors increasingly adopt machine learning for customer engagement.

The integration also strengthens CRM connectivity. Hearsay’s strong partnership with Salesforce—including prior venture capital investment from Salesforce’s fund in 2020—positions the combined entity to provide seamless workflows. Brands will synchronize contact data, monitor client interactions in real time, enhance field team productivity, automate multi-step processes, and identify scalable best practices across their operations.

Why This Timing Matters

Michael Boese, CEO of Hearsay Systems, emphasized the broader opportunity: “Hearsay has continuously innovated for financial services, delivering transformative engagement solutions and successfully deploying AI in heavily regulated contexts. This combination expands our reach into adjacent industries while delivering enhanced value. The intersection of AI and digital marketing is still in its early stages—combining our platforms and talent accelerates the pace of innovation and amplifies what we can deliver to customers.”

What Comes Next

The transaction is projected to close during the second half of Yext’s fiscal 2025 (ending January 31, 2025), pending standard regulatory approvals and customary closing conditions. Wilson Sonsini Goodrich & Rosati is advising Yext on the deal, while Latham & Watkins represents Hearsay Systems.

The integration positions both organizations to address a market-wide shift: enterprises seeking to reduce vendor fragmentation, improve customer data coherence, and harness AI-powered insights across every touchpoint. For Yext, the acquisition of Hearsay Systems signals confidence that consolidation—not proliferation—is the winning playbook in digital customer engagement.