Yext, an online presence management and listings company, has agreed to acquire financial services customer engagement and compliance platform provider Hearsay Systems for up to $220 million.
The initial deal is for $125 million, with an additional $95 million in potential performance bonuses.
Pending closing conditions and regulatory approvals, the acquisition is expected to be finalized in the second half of fiscal year 2025. Wilson Sonsini Goodrich & Rosati, PC, is serving as legal counsel to Yext and Latham & Watkins LLP is representing Hearsay Systems.
Morgan Stanley Wealth Management partnered with Yext in December 2018 to increase the visibility of its financial advisors and improve communication between them and potential clients.
Over 260,000 financial services professionals use Hearsay Systems in wealth management, asset management, banking and insurance. Clients include BlackRock, Charles Schwab, Morgan Stanley and New York Life.
Founded in 2009, the company introduced Gossip Relate in May 2018, allowing advisors to call and text clients from a dedicated business number. In October 2018, it added Advisor Actions, which presents a menu of next steps an advisor can typically take and pushes them to CRM. In December 2019, Hearsay began offering compliance monitoring for text messages within Hearsay Relate. The company also debuted a automated video compatibility tool in December 2021.
In October 2022, Hearsay discovered a new platform that combined several products into an integrated system. In addition to Hearsay Relate, this is included Relatedwhich helps create mobile-optimized websites, and Social, which manages a firm's social media publishing and messaging.
Hearsay Systems entered the AI fray in April 2023 with Content +which uses technology to power advisors' marketing campaigns.