MasterCard has announced that it has acquired Israeli AI company Dynamic Yield from McDonald's. No financial details were disclosed but sources familiar with the deal say it is for more than the $300 million that McDonald's paid for the Israeli optimization and decision-engine platform two years ago.
Dynamic Yield was founded in 2011 by Liad Agmon and Omri Mendellevich to help media and e-commerce companies provide their consumers with a better Internet experience adapted to their preferences and tastes. Following the acquisition by McDonald's, the fast food giant installed Dynamic Yield's technology in its order system for drive-thru outlets. McDonald's claims that this has resulted in a doubling of sales. Sources believe that McDonald's had originally planned spinning off the Israeli company but talks on a sale with Mastercard began last January.
Mastercard said, "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. The software-as-a-service (SaaS) platform uses advanced AI and other technologies to support 400+ brands across the retail, financial services, travel and restaurant industries, among others."
The deal is due to close in the first half of 2022, and following the completion CTO Ori Bauer will take the helm as CEO, while current CEO Liad Agmon will stay on in an advisory capacity.
Published by Globes, Israel business news - en.globes.co.il - on December 21, 2021.
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