Yext CEO proposes to acquire company at $9 per share

NEW YORK - Yext, Inc. (NYSE:YEXT) announced Monday that CEO and Chairman Michael Walrath has submitted a proposal to acquire all outstanding shares of the company not already owned by him for $9.00 per share in cash. The offer comes as Yext’s stock has delivered a 63% return over the past year, with the company maintaining impressive gross profit margins of 76.5%.

Walrath indicated in the proposal that he has backing from "reputable and well-capitalized financing sources" that have expressed support subject to due diligence. He also stated his willingness to work with other qualified bidders and support superior proposals if received. According to InvestingPro analysis, the proposed price aligns closely with the stock’s Fair Value, suggesting a reasonable valuation for shareholders. InvestingPro offers detailed valuation metrics and 14 additional investment tips for Yext.

"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.

In response to the proposal, Yext’s Board of Directors has formed a Special Committee of independent directors to evaluate the offer. The committee has retained BofA Securities as its financial advisor and Wilson Sonsini Goodrich & Rosati as its legal advisor.

The proposal is non-binding and subject to conditions including negotiation of definitive agreements and completion of due diligence. There is no assurance that the proposal will result in any transaction.

Yext also announced it plans to release its fiscal year 2026 second quarter results in early September, with results expected to be within or better than previously stated guidance. The company has withdrawn its guidance for the remainder of fiscal year 2026 and will not hold a conference call in light of the pending proposal.

Yext describes itself as a brand visibility platform that helps companies manage their digital presence across AI search, traditional search, social media, websites, and direct communications.

This information is based on a press release statement from Yext.

In other recent news, Yext Inc. reported its Q1 Fiscal 2026 earnings, meeting the earnings per share (EPS) forecast of $0.12 and surpassing revenue expectations with $109.5 million, compared to the forecasted $107.6 million. Following these strong results, DA Davidson analysts raised the price target for Yext stock to $8.25 from $7.50, maintaining a Neutral rating. Additionally, B. Riley analysts upgraded Yext stock from Neutral to Buy, increasing the price target to $10.00 from $7.00, citing improvements in key performance indicators and a positive outlook. The analysts highlighted Yext’s management track record, noting significant EBITDA margin expansion and successful mergers and acquisitions over the past two years.

Furthermore, Yext conducted its annual stockholders’ meeting, where shareholders elected three Class II directors to serve a three-year term. The directors elected were Hillary Smith, Michael Walrath, and Seth Waugh, who received majority votes. During the meeting, shareholders also ratified the company’s independent auditor and approved executive compensation. These developments indicate a positive trajectory for Yext, as reflected in the analysts’ confidence and the company’s recent financial performance.

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