McDonald's buys minority stake in New Zealand-based Plexure
It is the fast food giant’s first-ever investment in a mobile app vendor.
McDonald’s Corporation announced its investment in New Zealand-based mobile engagement software company Plexure, which powers a version of the fast food chain's global mobile app in 48 countries outside the US.
Funds from the investment will further Plexure’s growth plans whilst giving McDonald’s enhanced access to Plexure’s technology, including access to “greater” back-end and front-end features, customer functionality and customer targeting.
McDonald’s, through an indirect wholly-owned subsidiary, will purchase 13,795,311 shares of Plexure, facilitated through a cash transaction at an issue price of NZ$0.3905, representing a 10% premium on the price of Plexure shares as of April 1. McDonald’s cash investment will result in a 9.9% minority stake.
The move comes at the heels of the fast food giant’s recent announcement to acquire personalization company Dynamic Yield.
The investment also coincides with an amendment to the existing software service agreement between the two companies, which will extend McDonald’s usage of Plexure’s technology and set new specifications for service levels and pricing. As part of this agreement, Plexure will not provide similar services to a defined list of competitors in the QSR space, based on certain terms and conditions.
“Our mobile apps play a key role in our digital acceleration, allowing customers to interact with us on their terms in a personal, customized way. This investment is a testament to our belief in Plexure’s ability to deliver strong results for our business as well as the talent and technology they’ve cultivated,” McDonald’s president and CEO Steve Easterbrook said in an announcement.
