KFC, Pizza Hut and Taco Bell restaurant brands operator Yum! Brands has concluded the acquisition of Dragontail Systems, an Australia-based provider of kitchen order management and delivery technology, for $68.9m (A$93.5m).
In May, Yum! Brands signed a binding agreement to acquire Dragontail by way of a share scheme of arrangement in line with Australian corporations law.
Dragontail is focused on transforming the quick service restaurant and foodservice industry with its two core technology offerings, and with the completion of the deal, the company is now a wholly-owned subsidiary of Yum! Brands.
As part of Yum! Brands, it will continue to offer technology solutions to its existing clients.
Yum! Brands CEO David Gibbs said: “We’re excited to welcome Dragontail and its world-class talent to the Yum! family and look forward to deploying its artificial intelligence (AI) kitchen order management, delivery and other technologies globally to our brands and franchisees over time.”
The deal will bolster Yum! Brands’ global order management and delivery capabilities, while integrating new technology talent into the company.
Additionally, the deal brings in house other Dragontail technologies, such as the QT AI camera quality control system.
The QT AI sensor and camera system is capable of monitoring the preparation and cooking process in the kitchen automatically.
Dragontail Systems managing director Ido Levanon said: “This transaction is a positive one for Dragontail shareholders and it provides Yum! Brands with even more innovative technology.
“We look forward to working together to deploy this technology to more Yum! Brands restaurants around the world.”
Levanon will continue to manage Dragontail employees, who will primarily be located in the US, Israel and Australia.
For this transaction, Baker McKenzie served as lead legal advisor to Yum! Brands, while Thomson Geer acted as legal advisor to Dragontail.