Last April it was announced that CDK Global, Inc., was being acquired by Brookfield Business Partners for $8.3 billion. Under merger agreement terms, CDK shareholders were said to receive $54.87 per share in cash upon completion of the transaction. “This transaction is an exciting next step for CDK that provides our shareholders with both certainty of value and a meaningful premium," claimed Brian Krzanich, president and CEO of CDK Global.
The CDK team will continue to focus on the car side. "It also allows CDK to continue executing our long-term strategy to connect our industry at every level and create an open and collaborative future.” Brookfield and CDK share a common vision to transform and improve the entire consumer automotive retail experience from sourcing to retail sale, Krzanich noted.
Brookfield Business Partners, is part of Brookfield Asset Management, a private equity firm with approximately $690 billion of assets. With $2 billion in annual revenues, CDK Global provides retail technology and software as a service (SaaS) solutions that help dealers run their businesses and drive profitability. CDK currently serves more than 15,000 retail locations in North America.
“In consultation with our outside advisors, CDK’s Board of Directors carefully evaluated a range of strategic and financial alternatives over several months and determined that this transaction is superior to all other available alternatives," concluded Krzanich.
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