Mastercard buys Dynamic Yield from McDonald’s; Hilan snaps up DXC Israel

 Mastercard buys Dynamic Yield from McDonald’s; Hilan snaps up DXC Israel

Multinational financial services giant Mastercard is acquiring Israeli customer personalisation technology company Dynamic Yield from fast-food major McDonald’s.

The deal comes two years after McDonald’s bought Dynamic Yield for about $300 million, in a deal that marked its biggest acquisition in two decades until then.

McDonald’s had hoped to use the Israeli company’s technology to boost sales by creating drive-through menus that would change with the time of day, season, weather, restaurant traffic and trending menu items. But it said earlier this year the increase in sales did not come through and that it was looking to sell the unit completely or in part.

Dynamic Yield was founded in 2011. It has created an artificial intelligence-powered data personalization omnichannel which, it says, helps campaigns deliver individualized customer experiences across platforms.

Mastercard said in a statement Tuesday that Dynamic Yield’s technology was “a natural addition” to the financial services company’s offerings “that help brands deliver more effective and trusted customer experiences across channels”. It didn’t disclose financial details of the deal.

As part of the deal, Dynamic Yield’s chief technology officer Ori Bauer will become the CEO and its co-founder and current CEO Liad Agmon will be an advisor.

“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 and services at Mastercard. “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.”

Hilan-DXC

Hilan Group’s IT services arm Ness has agreed to acquire DXC Technologies’ Israel-based IT services company for $65 million.

“The acquisition of DXC’s business in Israel will be a significant addition to our operations in Israel and will position Ness as a market leader in the world of digital and technological transformation,” said Avi Baum, chairman of Hilan.

The deal is likely to be closed by the first quarter of 2022. The combined entity will employ as many as 5,000 people, of which 600 will be from DXC’s IT arm.

DXC Israel adds to Hilan’s list of acquisitions in recent years. Hilan bought enterprise resource planning company Hashavshevet in October, US company PayDay in 2019 and Ness in 2014.

Aman Malik

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