Planned strategic acquisition to advance Yelp’s AI transformation and expand SaaS offerings to help services businesses grow and operate
Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced its agreement to acquire Hatch, a leading AI-powered lead management and communication platform. As AI rapidly reshapes how businesses operate, this planned acquisition will bring together Yelp’s scale and trusted brand with Hatch’s innovative lead management solutions, better positioning both companies to serve the evolving needs of services businesses as they embrace AI for growth.
“The acquisition of Hatch is an important step forward in Yelp’s AI transformation, accelerating our strategy to bring powerful new AI tools to local businesses,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “Hatch is solving challenging lead management and communication pain points for services businesses, and we’ve been impressed by the innovative AI technology and traction they’ve built. I believe that by bringing our companies together we will be able to help service providers operate and grow more efficiently.”
Hatch’s AI-powered customer communication platform is designed to help businesses increase conversion and retention at lower overhead costs.
“This is an incredible moment for Hatch,” said Chris Bache, Hatch’s co-founder and chief executive officer. “We’ve worked day in and day out to build something that truly helps our customers grow their businesses. I’m grateful to the Hatch team for all their work and dedication that brought us to this milestone. Joining Yelp means we can scale faster and help more businesses grow and succeed. The journey has only just begun, and I couldn’t be more excited about what we’ll accomplish together.”
Under the terms of the agreement, Yelp will acquire Hatch for approximately $270 million in cash with an additional $30 million of employee retention to be paid out over two to three years. As of November 2025, Hatch had achieved approximately $25 million in annual recurring revenue,1 representing a year-over-year ARR growth rate of 70%, at a modestly negative cash flow. The transaction is expected to close in early February, subject to customary closing conditions. Upon the closing of the transaction, Hatch will be a wholly owned subsidiary of Yelp.
1 Calculated as recurring subscription amounts billed to customers in November 2025, less refunds and uncollectable amounts, multiplied by 12.
