Yelp Inc. (NYSE: YELP), the platform connecting consumers with local businesses, announced a planned acquisition of Hatch, an AI-driven lead management and communication platform. The deal, valued at $270 million in cash plus $30 million for employee retention, marks a strategic push to expand Yelp’s AI offerings for service-oriented businesses.
“Hatch is solving challenging lead management and communication pain points for services businesses,” said Jeremy Stoppelman, co-founder and CEO of Yelp. “By bringing our companies together, we will be able to help service providers operate and grow more efficiently, accelerating Yelp’s AI transformation.”
Hatch’s platform helps businesses increase lead conversion and customer retention while reducing overhead through AI-powered automation. The acquisition allows Yelp to integrate advanced AI tools directly into its ecosystem, supporting local businesses in a rapidly evolving digital landscape.
“This is an incredible moment for Hatch,” said Chris Bache, co-founder and CEO of Hatch. “Joining Yelp means we can scale faster and help more businesses grow and succeed. The journey has only just begun, and I’m excited about what we’ll accomplish together.”
Financial Snapshot
As of November 2025:
- Annual Recurring Revenue (ARR): ~$25 million
- Year-over-Year Growth: 70%
- Cash Flow: modestly negative
The deal is expected to close in early February, subject to customary conditions. Post-acquisition, Hatch will operate as a wholly owned subsidiary of Yelp, maintaining its technology and team while expanding its reach through Yelp’s scale and customer base.
By integrating Hatch, Yelp aims to provide service businesses with AI-enabled tools to streamline lead management, improve customer engagement, and accelerate revenue growth—positioning itself as a more comprehensive partner for the local services ecosystem.
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