- May 29, 2021 / 6 min readCompletion of the acquisition of Dragontail under the transaction documents will mark Yum! Brands’ third technology acquisition in 2021.
Yum! Brands Inc and Dragontail Systems Limited, an innovative provider of technology solutions for the food industry, have entered into a binding agreement under which Yum! Brands would acquire Dragontail by way of a share scheme of arrangement in accordance with Australian corporations law (referred to as the Scheme).
If the Scheme is successfully implemented, the addition of Dragontail to Yum! Brands’ growing technology portfolio is intended to give Yum! Brands the ability to scale Dragontail’s artificial intelligence (AI) kitchen order management and delivery technology globally.
Australia-based Dragontail’s platform is focused on optimizing and managing the entire food preparation process from order through delivery. Its AI-based solution automates the kitchen flow combined with the process of dispatching drivers. The technology can also operate with outside food delivery partners. In addition, Dragontail’s platform offers consumer-facing capabilities that enable customers to track their order.
Dragontail's Managing Director, Ido Levanon, commented, “Yum! Brands and Dragontail have been working in a fruitful collaboration for years. Dragontail's Board of Directors fully supports this transaction, which it considers to be an attractive opportunity for its shareholders. It will also provide Yum! Brands with innovative technology. The activities of Dragontail and Yum! Brands are complementary, the synergy is natural and we bless the completion of the acquisition.”
Dragontail’s platform is currently deployed across nearly 1,500 Pizza Hut restaurants in over 10 countries. If the Scheme is successfully implemented, Yum! Brands intends to scale and offer Dragontail’s platform to its brands around the world over time.
In addition to its kitchen order management and delivery technology, Yum! Brands’ purchase of Dragontail would also bring in house other Dragontail emerging technologies.
Completion of the acquisition of Dragontail under the transaction documents will mark Yum! Brands’ third technology acquisition in 2021. In March, Yum! Brands acquired the business of Kvantum, Inc., an AI-based consumer insights and marketing performance analytics company with a proven track record of adding significant value in enabling data-driven decisions to drive return on advertising dollars and increase sales. That same month, Yum! Brands also acquired Tictuk Technologies, a leading omnichannel ordering and marketing platform company offering more ways for consumers globally to access and order KFC, Pizza Hut, Taco Bell and The Habit Burger Grill through text, social media and other conversational channels.
Under terms of the transaction documents, Yum! Brands has agreed to pay A$93.5 million in cash for all of the issued share capital in Dragontail (on a fully diluted basis). Yum! Brands expects the acquisition of Dragontail to close by the end of the third quarter of 2021.
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