CDK Global

Last updated
CDK Global, Inc.
Type Private
Nasdaq: CDK
IndustrySoftware
Founded2014;9 years ago (2014) [1]
Headquarters Hoffman Estates, Illinois, U.S.
Key people
Brian P. MacDonald
(President & CEO) [2] [3]
ProductsSoftware for the automotive retail [4]
RevenueIncrease2.svg US$1.67 billion (2021)
Decrease2.svg US$425 million (2021)
Increase2.svg US$1.03 billion (2021)
Total assets Decrease2.svg US$2.71 billion (2021)
Total equity Increase2.svg US$495 million (2021)
Owner Brookfield Business Partners
Number of employees
6,500 (2021)
Website cdkglobal.com
Footnotes /references
[5]

CDK Global Inc. is an American multinational corporation based in Hoffman Estates, Illinois, providing data and technology to the automotive, heavy truck, recreation, and heavy equipment industries. [6] [4]

Contents

The company has 37 locations in 25 countries [7] and its products are sold in over 100 countries, [4] however most of its customers are in the United States. [8] [9] In 2020, the company ranked 911 on the Fortune 1000 list of the largest United States corporations by total revenue. [10]

Products

CDK Global provides integrated information technology and digital marketing to the automotive, heavy truck, recreation, and heavy equipment industries. [3] [8] The company's products help to integrate clients buying processes and include targeted advertising and marketing, as well as products for the sale, financing, insuring, parts supply, repair, and maintenance of vehicles. [8] [6] [11] Competitors include Reynolds and Reynolds and Dealertrack. [12] [13]

History

The company has its origins as the Dealer Services division of Automatic Data Processing (ADP) which was formed in 1973 after ADP's acquisition of National Inventory Control System, Portland OR (NICS) and Computer System Inc., Cincinnati, OH (CSI) providing computerized Accounting, Financial Reporting, Sales Analysis, Lease Accounting, Parts Inventory Control, Customer Relations, Management Systems for both Sales and Service, and Payroll Services for automotive dealerships. [14] [15] As ADP Dealer Services, the division was subsequently built up of more than 30 acquisitions completed over the next 41 years. [16]

On October 1, 2014, ADP Dealer Services division was spun-off to form the independent company CDK Global. [17] The CDK in the company's name was inspired from different acquisitions; C from Cobalt Digital Marketing, [18] D from the original ADP Dealer Services business, and K from Kerridge Computer Company, a UK-based DMS supplier acquired by ADP in 2005. [19] [20]

Notable acquisitions include BZ Results (Automotive Dealer Services), winner of the 2006 “Innovative Company of the Year”, [21] [22] by ADP in 2006. [23]

In 2020, CDK Global announced the sale of its international operations (to be called Keyloop) to Francisco Partners, as an effort to focus more on its North American business. [24] [25]

On April 7, 2022, CDK Global agreed to be acquired by Brookfield Business Partners and institutional partners for a total enterprise value of $8.3 billion. The deal will offer CDK investors $54.87 for each share held, representing a 30% premium. [26] [27] Brookfield completed the deal on July 6, 2022. [28] [29]

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References

  1. ↑ "CDK Global Inc - Company Profile and News". Bloomberg.com.
  2. ↑ "Our Leadership | CDK Global". www.cdkglobal.com.
  3. 1 2 "CDK | CDK Global Inc. Company Profile & Executives - WSJ". www.wsj.com.
  4. 1 2 3 Editorial, Reuters. "CDK.O - CDK Global Inc Profile | Reuters". www.reuters.comundefined.{{cite web}}: |first= has generic name (help)[ dead link ]
  5. ↑ "CDK Global Inc. 2021 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission . August 18, 2021.
  6. 1 2 "About | CDK Global". www.cdkglobal.com.
  7. ↑ "Locations". craft.co. Retrieved 2021-04-24.
  8. 1 2 3 "Do Traders Think CDK Global Inc (CDK) Can Keep Climbing Tuesday?". www.investorsobserver.com.
  9. ↑ "CDK Global commands 9.79% market share in Automotive". enlyft.com.
  10. ↑ "CDK Global | 2020 Fortune 500". Fortune.
  11. ↑ "CDK Global Reports Strong Revenue Growth and Margin Expansion for the First Quarter of Fiscal 2017 and Increases Full Year Earnings Outlook | CDK Global Inc". investors.cdkglobal.com.
  12. ↑ "Top 5 products in the Automotive market". enlyft.com.
  13. ↑ Gardner, Greg. "Tekion Sees The Cloud As Key To Streamlining Auto Retailing". Forbes.
  14. ↑ Cars and Trucks January-December 1973: Vol 45 Index. Internet Archive. Internet Archive: National Automobile Dealers Association. 1974-01-01. p. 5.{{cite book}}: CS1 maint: others (link)
  15. ↑ Vendor Profile: A Publication from INPUT's Vendor Analysis Program. Input Reports and Research Archive Project. Internet Archive. 1976. p. 611.{{cite book}}: CS1 maint: location missing publisher (link) CS1 maint: others (link)
  16. ↑ "CDK Global: A Spin-Off Worth Avoiding". seekingalpha.com. October 18, 2014. Retrieved 2021-04-24.
  17. ↑ "EX-99.1". www.sec.gov. Retrieved 2021-09-01.
  18. ↑ Staff, PE Hub (2010-07-12). "ADP Buying Cobalt Group for $400 Million". PE Hub. Retrieved 2021-09-01.
  19. ↑ "ADP Reveals Post-Spin Name of Dealer Services Business". Auto Remarketing. 2014-08-19. Retrieved 2021-09-01.
  20. ↑ "ADP Dealer Services under new name - CDK Global". www.am-online.com.
  21. ↑ Sean Wolfington Archived 2007-12-11 at the Wayback Machine
  22. ↑ "Archived copy" (PDF). Archived from the original on 2007-11-30. Retrieved 2021-04-23.{{cite web}}: CS1 maint: archived copy as title (link) CS1 maint: bot: original URL status unknown (link)
  23. ↑ "ADP Acquires BZ Results". WardsAuto. March 17, 2006.
  24. ↑ "CDK Global completes $1.45 billion sale of international unit". Crain's Chicago Business. March 1, 2021.
  25. ↑ "CDK Global to Sell International Business to Francisco Partners for $1.45 Billion". finance.yahoo.com. 30 November 2020.
  26. ↑ Balu, Nivedita; Mathews, Eva (April 7, 2022). "Brookfield to buy automotive software maker CDK Global for $6.41 bln". Reuters .
  27. ↑ "CDK Global to Be Acquired by Brookfield for $54.87 Per Share in Cash". www.businesswire.com. 2022-04-07. Retrieved 2022-04-07.
  28. ↑ "CDK Completes $8.3 Billion Sale to Brookfield". www.paulweiss.com/. 2022-07-06. Retrieved 2022-08-07.
  29. ↑ "CDK Global completes sale to Brookfield—what does this mean for dealer partners?". www.cbtnews.com/. 2022-07-22. Retrieved 2022-08-07.
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