- Dragontail Systems (DTS) is set to be acquired by Kentucky-based fast-food corporation Yum! Brands for $93.5 million
- Its subsidiary, Yum! Connect Australia, entered a scheme implementation deed to acquire Dragontail Systems as it thinks this will enhance its delivery technology capabilities and optimise the food prep process
- Dragontail claims this was an unsolicited offer which it received while planning to deepen its presence in the U.S
- Nevertheless, Dragontail’s board of directors says this will be an attractive opportunity for shareholders
- The scheme remains subject to a number of regulatory approvals and waivers so Dragontail is unable to determine when the scheme will be completed
- Company shares are up 21.6 per cent and trading at 22.5 cents
Dragontail Systems (DTS) has entered a scheme implementation deed with Yum! Brands Inc.’s subsidiary, Yum! Connect Australia (YCA).
Under the deed, YCA plans to acquire 100 per cent of the issued capital in Dragontail Systems for $93.5 million.
Dragontail’s shareholders will be entitled to receive 23.5 cents per DTS share as long as all conditions are satisfied and the scheme is implemented.
The company claims this was an unsolicited offer which it received while it was pre-arranging plans to deepen its presence in the U.S.
“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,” Dragontail Systems Managing Director Ido Levanon said.
“With Dragontail, we expect to tap into the power of artificial intelligence to accelerate and further enhance our delivery technology capabilities, especially at Pizza Hut, and optimise the end-to-end food preparation process,” Yum! Brands Chief Financial Officer Chris Turner said.
YCA is based in Kentucky and has over 50,000 restaurants in over 150 countries and territories. Its brands include the likes of KFC, Pizza Hut and Taco Bell, and is considered a leader in global retail development.
Similarly, Dragontail Systems also operates in the retail food service industry by using its core technologies that improve customer satisfaction in many ways.
“The activities of Dragontail and Yum! Brands are complementary, the synergy is natural and we bless the completion of the acquisition,” Ido added.
The scheme remains subject to a number of regulatory approvals and waivers. The company is unable to determine when the scheme will be completed.
Company shares are up 21.6 per cent and trading at 22.5 cents at 12:05 pm AEST.