Shares of Yext, Inc. (NYSE:YEXT) surged on Tuesday after the brand visibility software company unveiled plans for a $180 million share buyback through a “modified Dutch auction” tender offer.
The stock climbed about 11% after Yext said it intends to repurchase up to $180 million of its common shares at prices ranging from $5.75 to $6.50 per share in cash. The proposed range represents a premium of roughly 17% to 32% compared with Monday’s closing price of $4.91. The tender offer is set to expire on March 12, 2026, unless it is extended or withdrawn.
Yext said the transaction is aimed at returning capital to shareholders and believes the “modified Dutch auction” structure gives investors flexibility to tender some or all of their shares at a price of their choosing within the stated range.
The company added that the approach allows shareholders to generate liquidity without the potential market disruption and transaction costs often associated with open-market share repurchases. Investors who opt not to tender their shares would see their relative ownership in the company increase.
Under the offer’s terms, shareholders may tender their shares at any time before the expiration date and retain the right to withdraw them prior to the close of the offer. Yext noted that the structure is designed to provide liquidity while minimizing pressure on the share price compared with conventional market transactions.