McDonald’s sells Dynamic Yield to Mastercard. The Israeli company experiences rapid expansion as one of the world’s leading personalization platforms. McDonald’s announced in April that it is looking for a buyer for Dynamic Yield.
No financial details were disclosed, although it is likely to be larger than the $300 million paid by McDonald’s for the company in 2019. The deal is expected to finalize in early 2022.
Founded in 2011 by CEO Liad Agmon and Omri Mendellevich, Dynamic Yield has developed machine learning algorithms to help businesses personalize their websites to specific users. It presents tailored product recommendations, discounts, and content based on past purchases, page views, time of day, current store traffic, and trending products.
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Dynamic Yield supports approximately 400 brands in industries such as retail, financial services, travel, and restaurants. It has been deployed to drive-thrus and ordering kiosks in markets including the U.S., Australia, and Canada.
Following its purchase of Dynamic Yield McDonald’s was one of the first brands to integrate decision technology into its restaurants. Under McDonald’s ownership, Dynamic Yield doubled its revenue and expanded its customer base across verticals.
Following the acquisition in 2019 Dynamic Yield remained independent. However, “McDonald’s plans to further integrate Dynamic Yield’s capabilities globally and across ordering channels,” the company said.
Before being acquired by McDonald’s the company had raised $83 million. CEO Liad Agmon will remain an advisor until the end of 2022. CTO Ori Bauer, will become CEO, reporting to Mastercard’s Data & Services division.
Following the deal, Mastercard will establish a large R&D center in Israel, employing hundreds of engineers.
”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.”