Mastercard To Acquire Israeli Tech Firm Dynamic Yield From McDonald’s

Mastercard is set to acquire Dynamic Yield, an Israeli-founded customer personalization platform, and decision engine firm, from fast food giant McDonald’s, the companies announced earlier this week.

The acquisition in 2019 was said to be valued at $300 million and was McDonald’s largest purchase in 20 years.

A statement on Tuesday said Dynamic Yield’s technology is “a natural addition to Mastercard’s existing suite of services that help brands deliver more effective and trusted customer experiences across channels.”

”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. With Dynamic Yield’s expertise and our scale and relationships, we’ll be able to bring the connections between the end consumer and our customers to new heights,” said Raj Seshadri, President of Data & Services,

Founded in 2011, Dynamic Yield developed an AI omnichannel personalization engine that delivers customer experiences across touchpoints like web, apps, email, kiosks, Internet of Things, and call centers.

Dynamic Yield’s technology has been deployed to McDonald’s drive-thrus and ordering kiosks in several markets around the world.

When it purchased Dynamic Yield two years ago, McDonald’s became one of the first brands to integrate decision technology into its restaurants. Dynamic Yield is said to have doubled its revenue and expanded its customer base across verticals, according to the statement, but earlier this year, CNBC reported that McDonalds has considered selling part of the company as its franchisees questioned the system’s performance in the past year. McDonald’s has said that a review of transactions found that the technology had contributed to sales less than originally reported.

Even with Dynamic Yield’s sale to Mastercard, for which financial details were not disclosed, McDonalds plans to continue using the tech “to further scale and integrate Dynamic Yield’s capabilities globally and across ordering channels.”

The transaction is expected to close in the first half of 2022