Yext CEO offers to take company private in $1.1 billion deal
FILE PHOTO: A Specialist trader wears a Yext vest during the company's IPO on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 13, 2017. REUTERS/Brendan McDermid/File Photo
Yext's CEO Michael Walrath has proposed taking the search optimization company private in a deal valued at about $1.1 billion, it said on Monday, sending shares up 9 per cent in early trading.
Walrath, who owns 2.8 per cent of the company's shares according to data compiled by LSEG, offered $9.00 per share in cash for the stock he does not already own — a premium of 11.2 per cent to Friday's closing price.
Walrath indicated that the proposal is backed by reputable and well-capitalized financing sources, the company said. It did not disclose the names of the funding sources.
Yext's board has formed a special committee to evaluate the proposal and any strategic alternatives. There is no assurance the proposal will result in a transaction, the company said.
The New York-based company also said it is withdrawing its forecast for the rest of the fiscal year 2026 in light of the proposal.
The company's full-year revenue for 2025 rose 4 per cent to $421.0 million, but its net loss jumped to $27.9 million from $2.6 million from a year ago.
Its stock has gained more than 50 per cent in the past 12 months.
Yext provides software that helps companies increase their visibility on AI and traditional search, social media, websites and direct communications platforms.
"Yext has achieved remarkable progress, and I believe now is the right time to explore a transaction that can deliver compelling value to stockholders," Walrath said in a statement.
