Yext CEO Proposes $9 Take-Private Bid Amid Strong Growth and Acquisitions
Yext, Inc., a digital knowledge management company, has seen significant growth and interest from investors following its recent acquisitions and strong financial performance. The company's shares are trading at $8.83 with a forward P/E of 13.39, and several major institutional investors hold significant positions, potentially influencing share prices and takeover negotiations.
Yext's recent acquisitions of Hearsay Systems and Places Scout have expanded its capabilities in digital client engagement, structured data, and search analytics. The company has reported back-to-back quarters of double-digit revenue growth and record Adjusted EBITDA margins above 23%. Despite this, the valuation of Yext is approximately 9-10x EV/AEBITDA and ~2x sales, appearing undemanding for a software platform entering a higher-growth phase.
On October 8, 2025, Yext CEO Michael Walrath proposed a $9 per share take-private bid for the company, a 11.2% premium. This move comes amidst a bullish thesis on Yext published on Show me the incentives...'s Substack, which emphasizes the company's post-acquisition inflection and Scout launch. Yext Scout, an AI-driven visibility and benchmarking platform, has seen strong early momentum with over 1,000 waitlist sign-ups. Major shareholders may push for a higher price, potentially drawing in other bidders and increasing the likelihood of a 'pump it up' moment for Yext's shareholders.
Yext's recent acquisitions and strong financial performance have attracted the attention of major institutional investors, who hold significant positions in the company. With a proposed take-private bid from CEO Michael Walrath and a bullish thesis from Show me the incentives..., Yext's future remains uncertain but promising. The company's undemanding valuation and strong early momentum for its Scout platform suggest potential for further growth and investment.
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