IBM’s Acquisition of McD Tech Labs

Cravath, Swaine & Moore represented IBM in the transaction, while Kirkland & Ellis advised McDonald’s Corporation.

IBM has entered into an agreement with McDonald’s to further accelerate the development and deployment of its Automated Order Taking technology. Under the agreement, IBM will acquire McD Tech Labs, which was created to advance employee and customer facing innovations.

IBM’s acquisition of McD Tech Labs is a complement to its current work in AI and developing customer care solutions with IBM Watson, which is being used in multiple sectors to improve outcomes. Once the deal closes, the McD Tech Labs team will become part of the IBM Cloud & Cognitive Software division.

The Cravath team is led by partners Daniel J. Cerqueira (Picture) and George F. Schoen and includes associates William F. Roegge, Bethany A. Pfalzgraf and Jarrod L. Hall on M&A matters; partner J. Leonard Teti II, senior attorney Kiran Sheffrin and associate Joana W. Li on tax matters; partner Jennifer S. Conway, practice area attorney Aaron S. Cha and associate Laura S. Lee on executive compensation and benefits matters; senior attorney Joyce Law on real estate matters; and senior attorney Jesse M. Weiss on regulatory matters.

The Kirkland team was led by corporate partners Eric Schiele, Marshall Shaffer, Chelsea Darnell and Jaye Kasper, corporate associates Don Lee and Maxwell Eichner, technology & IP transactions partners Adam Petravicius, Shellie Freedman and Amber Harezlak and associate RJ McLaughlin, and executive compensation partners Michael Krasnovsky and Matthew Wood and associate Karsten Busby. 

Involved fees earner: Daniel Cerqueira – Cravath Swaine & Moore; Aaron Cha – Cravath Swaine & Moore; Jennifer Conway – Cravath Swaine & Moore; Jarrod Hall – Cravath Swaine & Moore; Joyce Law – Cravath Swaine & Moore; Laura Lee – Cravath Swaine & Moore; Joana Li – Cravath Swaine & Moore; Bethany Pfalzgraf – Cravath Swaine & Moore; William Roegge – Cravath Swaine & Moore; George Schoen – Cravath Swaine & Moore; Kiran Sheffrin – Cravath Swaine & Moore; J. Leonard Teti II – Cravath Swaine & Moore; Jesse Weiss – Cravath Swaine & Moore; Karsten Busby – Kirkland & Ellis; Chelsea Darnell – Kirkland & Ellis; Maxwell Eichner – Kirkland & Ellis; Amber Harezlak – Kirkland & Ellis; Jaye Kasper – Kirkland & Ellis; Michael Krasnovsky – Kirkland & Ellis; Don Lee – Kirkland & Ellis; Roger McLaughlin – Kirkland & Ellis; Adam Petravicius – Kirkland & Ellis; Eric Schiele – Kirkland & Ellis; Marshall Shaffer – Kirkland & Ellis; Shellie Weisfield Freedman – Kirkland & Ellis; Matthew Wood – Kirkland & Ellis;

Law Firms: Cravath Swaine & Moore; Kirkland & Ellis;

Clients: IBM; McDonald’s Development Italy LLC;