Fast food franchise McDonald’s agreed today to acquire Dynamic Yield, a US-based online marketing technology developer backed by corporates Baidu, Deutsche Telekom, Naver, New York Times and ProSiebenSat.1.
Terms of the deal were not disclosed, but people familiar with the matter told technology news portal Wired that McDonald’s will pay more than $300m in the deal.
Founded in 2011, Dynamic Yield has created a machine learning software platform that helps marketing staff to personalise their interactions with consumers in real time.
McDonald’s will integrate the technology into its drive-through displays in order to promote food based on the time of day, weather, current restaurant traffic and trending items. The technology will also be able to suggest additional items related to a customer’s selection.
The burger chain will implement the technology throughout its US locations in 2019, before expanding its use to international markets with a view to absorbing the system into its self-service kiosks and mobile app.
McDonald’s will be the sole owner of Dynamic Yield, which will continue to operate as a standalone business, serving existing and new clients. It will also invest in the continued development of the company.
Dynamic Yield had raised $83m in equity financing including $38m in a series D round that closed in November 2018 with a $6m investment by internet company Naver.
The first $32m tranche was led by Viola Growth,the growth equity fund owned by venture capital firm Viola Ventures, and backed by Union Tech Ventures, the investment arm of car distributor Union Group, in August 2018.
Internet group Baidu, Deutsche Telekom Capital Partners and ClalTech, respective subsidiaries of telecommunciations firm Deutsche Telekom and conglomerate Access Industries, took part in a $31m series C round for the company in 2017 that included Vertex Ventures, LaMaison, Bessemer Venture Partners (BVP), Marker and Innovation Endeavors.
Dynamic Yield had previously received $12.3m in a 2014 series B round featuring media companies New York Times and ProSiebenSat.1 as well as Marker, BVP and Innovation Endeavors. The latter two had already backed its $2m series A in 2013 alongside New York Times.
