Mastercard to acquire Israeli personalization platform Dynamic Yield from McDonald’s
The payments powerhouse will be paying an undisclosed fee to the world’s leading global foodservice retailer for the company it acquired for $300 million in 2019
Founded in 2012 by Liad Agmon and Omri Mendellevich, Dynamic Yield’s service uses machine learning algorithms to help businesses tailor their website to individual consumers according to behavioral patterns. Dynamic Yield had raised $83 million from investors including Naver Corporation and Bessemer Venture Partners prior to being acquired by McDonald’s.
McDonald's president and CEO Steve Easterbrook explained at the time of the purchase that it is expanding its “ability to increase the role technology and data will play” in its future, and the speed with which it will be able to implement its “vision of creating more personalized experiences” for customers. Dynamic Yield remained independent following the acquisition and McDonald’s realized that it could continue to benefit from its services without actually owning it. McDonald’s announced this past April that it is looking for a buyer for Dynamic Yield, a process that has ultimately ended with the Mastercard deal.
Dynamic Yield uses advanced AI and other technologies to support over 400 brands across the retail, financial services, travel, and restaurant industries, among others. Sitting across online and offline channels to personalize a consumer’s experience with a brand, 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.
McDonald’s became one of the first brands to integrate decision technology into its restaurants following its purchase of Dynamic Yield. Under McDonald’s ownership, Dynamic Yield doubled its revenue and expanded its customer base across verticals. To date, Dynamic Yield’s technology has been deployed to drive-thrus and ordering kiosks in markets including the U.S., Australia, and Canada. “McDonald’s plans to further integrate Dynamic Yield’s capabilities globally and across ordering channels,” the company said.
“After it became known that McDonald’s plans to spin us off we received approaches from the largest tech companies in the world, VCs, and a vast array of investors. However, we had immediate chemistry with Mastercard,” Agmon told Calcalist. “We felt that there is an amazing opportunity to continue and grow with Mastercard. We have tripled our revenue since we were acquired by McDonald’s and we have 400 major clients across the world. Around 220 of our 320 employees are in Israel and we are planning on doubling the company’s workforce over the next two years.”
”The notion of going into a store or opening a webpage to find an experience perfectly tailored to you is no longer farfetched—it’s a reality that more brands are deploying and more consumers expect,” said Raj Seshadri, President of Data & Services at Mastercard. “With Dynamic Yield’s expertise and technology, we’ll be able to further personalize digital experiences around the world. We’re delighted to continue working with McDonald’s, a longstanding client and proven innovator in this space.”