TLDR:
Key Points:
- Hearsay is being acquired for $125 million by Yext after spending 15 years and $51 million of VC money on trying to automate RIA sales.
- The acquisition is based on Yext believing they can use AI to quickly fix the issues Hearsay faced in connecting with investors.
In a deal worth $125 million, Hearsay is being acquired by Yext after spending 15 years and $51 million of venture capital money in an attempt to automate RIA sales. Despite their efforts, the San Francisco startup fell short on actually connecting with investors. Yext, the buyer, sees potential in some aspects of Hearsay’s technology and believes they can apply a quick-fix solution with the help of artificial intelligence.
The deal includes a reward of $95 million for Hearsay investors if the company is able to produce an earnings bump. Michael Walrath, a key figure in the acquisition, expressed confidence in the combined technology of both companies and believes it will bring instant value to their regulated customers. Yext is hoping that this acquisition will help them capitalize on the strengths of Hearsay’s technology and improve their own offerings in the market.
