Yext Shares Surge as $180 Million Buyback Plan Offsets Buyout Collapse

The New York-based company is utilizing a modified Dutch auction to facilitate the buyback, inviting shareholders to tender their stock within a price range of $5.75 to $6.50 per share. This structure allows the company to determine the lowest price at which it can acquire the desired volume of shares. According to the company’s filing, the offer is scheduled to expire on March 12 at 5 p.m. ET.

Navigating a Failed Takeover

The aggressive buyback follows a period of significant turbulence for Yext. Earlier this month, CEO Michael Walrath withdrew a private bid to acquire the company for $9 per share, citing an inability to secure necessary financing. Walrath attributed the withdrawal to a broader contraction in valuations across the software landscape, which has pressured mid-cap tech firms throughout the year.

To fund the expanded repurchase—which grew from an initially planned $150 million to the current $180 million—Yext intends to leverage debt financing. The stock’s recent 12% rally to $5.52 provides some relief for investors, as the shares had previously cratered 36% over the preceding three months following the collapse of the buyout talks.