McDonald's
The largest deal that McDonald's had made in over two decades, it was a very unusual type of acquisition for the company, coming at a valuation of over $300 million. Although the details of the deal with MasterCard were not specifically revealed, the deal has been set to close in the initial part of 2022.
The reason behind the selling of Dynamic Yield to MasterCard was mainly because the company did not meet expectations when it came to sales boosts and the way that it conducted its technological performance.
"The acquisition by MasterCard will strengthen unique, existing synergies across McDonald's digital engagement experiences currently powered by SessionM and Test & Learn. In addition, McDonald's plans to further scale and integrate Dynamic Yield's capabilities globally and across ordering channels," McDonald's stated in a press release.
With the technology of Dynamic Yield, MasterCard will be able to assist its consumers and to help meet their increasing needs, with the desire to offer them more personable experiences, regardless of where they choose to shop.This deal additionally reveals the attempts from McDonald's to outsource its technology systems and to use it within the Golden Arches system. The combination of MasterCard's knowledge of payments and Dynamic Yield's artificial intelligence abilities could enable McDonald's to obtain a much stronger digital ordering method and to strengthen loyalty in terms of its rewards members. This past October, around $13 billion came through digital channels for McDonald's, such as its app, ordering kiosks, or delivery.
"There are certain times when it may make sense for us to go acquire a technology so that we can accelerate the development of that, make sure that it is bespoke to McDonald's needs," McDonald's CEO Chris Kempczinski stated at the company's third quarter earnings call. "But at some point that technology reaches a level of development where I think getting it to a partner who can then blow it out and scale it globally makes more sense."
