Yelp to Acquire Hatch for $270 Million

Yelp announced its agreement to acquire Hatch, anAI-powered lead management and communication platform. "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." Under the terms of the agreement, Yelp will acquire Hatch for approximately $270M in cash with an additional $30M of employee retention to be paid out over two to three years. As of November 2025, Hatch had achieved approximately $25M in annual recurring revenue, 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.