Yext CEO Drops Buyout Plan

Michael Walrath, CEO and Board Chairman of US-based digital presence and knowledge management platform Yext, has withdrawn his proposal to acquire all the remaining shares in the company. Instead, the company has approved a 'Dutch auction' self-tender of $150m of common stock.

Yext uses machine learning technology to help companies deliver 'consistent, accurate and engaging experiences' and connect with customers anywhere in the digital world. It also provides clients with cross-channel analysis and insights to inform decision-making. A year ago it acquired Places Scout, a platform for local SEO, location intelligence and benchmarking.

Walrath tendered the proposal six months ago, offering $9.00 per share in cash for all the shares in the company not already owned by him. A Special Committee of independent directors was established to evaluate the proposal, along with other strategic means of returning capital to its stockholders. Walrath has now informed the Board he will not be able to obtain the necessary funding at this price, but reaffirmed his commitment to leading the company, and the Board says he has its confidence.

The self-tender, with specific amount and pricing to be determined based on market conditions and stock prices, should be launched this month, and may be funded by debt financing, the company says. Walrath states: 'I am very bullish on the future of the Yext business as AI continues to re-write the rules of Brand Visibility and discovery. I also believe in our global team and am excited to continue to lead the Company as it executes its strategy.'

The firm is on the web at www.yext.com .