Fast-food kingpin McDonald's (MCD) - Get McDonald's Corporation Report will sell personalization-data/artificial intelligence (AI) provider Dynamic Yield to credit-card giant Mastercard (MA) - Get Mastercard Incorporated Class A Report, the two companies said on Tuesday.
Terms weren't disclosed. The deal is expected to close in the first half.
Mastercard said the deal builds on its efforts to provide data-driven loyalty, analytics, and marketing services,
Dynamic Yield delivers individualized product recommendations, offers and content based on a range of factors, including past purchases, page views, time of day, current store traffic, and trending products.
The software-as-a-service platform uses advanced AI and other technologies to support more than 400 brands across the retail, financial services, travel and restaurant industries, among others.
McDonald's Rarely Is a Buyer
McDonald's bought the Israeli digital startup in 2019. The deal marked the fast-food giant's first acquisition in years and its biggest in two decades, according to The Wall Street Journal, which said McDonald's paid more than $300 million for the company.
Under its ownership, McDonald's said, Dynamic Yield doubled its revenue and expanded its customer base across verticals.
To date, Dynamic Yield’s technology has been deployed to McDonald’s drive-throughs and ordering kiosks in several markets around the world.
McDonald's Still Lovin AI
McDonald’s will continue to work with Dynamic Yield. The Chicago burger giant said it planned to further scale and integrate Dynamic Yield’s capabilities globally and across ordering channels.
At closing Dynamic Yield's chief technology officer, Ori Bauer, will take over as chief executive. Liad Agmon, the current CEO, will stay on as an adviser.