CDK Global, Inc. to be Acquired by Brookfield Business Partners

Apr 7, 2022 By MarketDepth

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CDK Global, Inc. (NASDAQ: CDK) to be acquired by Brookfield Business Partners (NYSE: BBUC), together with institutional partners, for $54.87 per share in a transaction valued at approximately $8.3 billion. 

Technology Provider for Software

CDK Global is a leading provider of technology services and software solutions that help automotive dealers and manufacturers run their businesses more efficiently. The Company’s best-in-class dealer management software plays a critical role in connecting every aspect of a dealership’s operations and providing solutions to help these customers grow their businesses.

“CDK Global is a high-quality and highly cash generative technology services and software business with a leading market position and strong fundamentals. We are excited to grow our technology footprint with the acquisition of CDK Global, and we look forward to leveraging our operating capabilities to build on the Company’s track record of providing best-in-class customer service and innovation.”

Doug Bayerd, Managing Director, Brookfield Business Partners

Investment Highlights

  • Strong market leadership position. CDK Global is the North American leader in providing mission-critical enterprise resource planning solutions and software for automotive dealerships, serving over 15,000 retail locations.
  • Durable business fundamentals. The Company’s subscription-based software model, recurring contracted revenues and low ongoing capital requirements underpin its track record of high margins and strong cash flow generation.
  • Stable industry outlook. Dealerships play a critical role as an efficient distribution and service channel across the entire automotive value chain. CDK Global has strong relationships with customers that operate multiple sites, which positions the Company well to benefit from accelerating consolidation across the dealership industry.

Operational value creation potential. We have identified meaningful opportunities to enhance the Company’s services and productivity as a means to improve the value proposition to CDK Global’s customers and grow margins and cash flows.