Published on the 05/04/2019 | Written by Heather Wright
First investment in mobile app vendor for fast food giant…
New Zealand’s Plexure – previously VMob – has gained a helping hand with none other than fast-food chain McDonalds taking a $5.4 million stake in the company.
The food giant is Plexure’s largest customer and has been using an app created by the Kiwi mobile engagement software developer for several years. The app is in use in 48 countries, including New Zealand.
The Plexure investment, which gives McDonald’s a 9.9 percent stake in the company and puts the total value of the company at $45 million given the 15 percent premium paid, is McDonald’s first-ever investment in a mobile app vendor with Craig Herbison, Plexure CEO, dubbing the investment ‘a tremendous vote of confidence from our largest customer’.
“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.”
“This investment will further our efforts to reach more people with our technology, provide world-class service to our clients and execute our growth plans for our company,” Herbison says.
The Kiwi company, which around 80 staff and 40+ developers, says its SaaS platform is used by more than 100 million customers globally. Its mobile engagement platform is used by companies across the fuel and convenience, retail, hospitality, health and entertainment sectors, with customers including 7-Eleven and Ikea. The platform’s modules includes analytics and insights on customer behaviour and mobile ordering and payment along with loyalty and personalisation modules.
Plexure says funds from the investment will further its growth plans while giving McDonald’s enhanced access to Plexure’s technology in the quick service restaurant (QSR) space, including access to greater back-end and front-end features, customer functionality and customer targeting.
The deal prohibits Plexure from providing similar services to some McDonald’s competitors.
Steve Easterbrook, president and CEO of McDonald’s, says mobile apps are playing a key role in the company’s digital acceleration, allowing customers to interact with the company on their terms in a personal, customised way.
“Across all of our markets, we’re using technology to elevate and transform the McDonald’s customer experience,” he says.
“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.”
The two companies announced amendments to the SaaS agreement on the back of the acquisition, including pricing changes expected to bring more than NZ$1 million a year in additional revenue.
News of the McDonald’s investment this week saw share price climb to a 52 week high of $0.49 by Friday morning.
