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CDK completes sale to investment firm Brookfield Business Partners

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CDK Global Inc. has completed. Its sale to investment firm Brookfield Business Partners, the two companies confirmed.

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Technology Vending Company, of Hoffman Estates, Ill. Said in a regulatory filing Brookfield’s acquisition of CDK completed Wednesday, at a price of approximately $8.7 billion “without triggering related transaction fees and expenses.”

CDK said in April that it had agreed to be acquired by Brookfield Business Partners – a unit of global alternative asset manager Brookfield Asset Management’s private equity group – with CDK shareholders receiving $54.87 per share in cash. That price would reflect a 30 percent premium to CDK’s closing price on February 18, which the company said was the last full day of trading before market speculation about a potential sale began.

CDK shares will no longer be publicly traded. The company said in its regulatory filing that it had notified Nasdaq of the deal and had requested a suspension of its shares before the market opened on Wednesday.

A CDK spokesperson confirmed the deal was final but did not provide comment from CDK leaders or make them available for interviews Wednesday. A Brookfield spokesperson confirmed the completion of the transaction and indicated Car News On comments from April when the acquisition was announced.

Brookfield in April described CDK as attractive for its market leadership; subscription-based recurring revenue streams; and what he called “meaningful opportunities” to improve the value of the CDK.

“We are excited to grow our technology footprint with the acquisition of CDK Global, and look forward to leveraging our operational capabilities to build on the company’s track record of providing best-in-class customer service and innovation,” Doug Baird, Brookfield Business Managing Director of Partners said in a statement at the time.

CDK’s board of directors, including the company’s CEO Brian Krzanich, resigned from their positions on the board when the deal was completed, according to the regulatory filing. It was not immediately clear whether Krzanich and other CDK executives would continue in their roles in the company’s leadership, though the filing said “company officers immediately prior to the event time will remain as officers” after the acquisition.

said Joe Totjes, COO of CDK Car News In April, Brookfield shared the CDK’s interest in technology innovation.

In an April letter to CDK agent clients who participated in a previous regulatory filing, Krzanich and Tautges wrote that “As a private company, we will have greater flexibility to invest in innovation and pursue our long-term vision to connect our industry at every level and create an open and collaborative future. With Brookfield, we will have the support, resources, and insights to help accelerate our growth and most importantly provide you, our customers, with more innovative products and services to help you To serve your customers better today and tomorrow.”

CDK has expanded its product portfolio beyond its core dealer management system business, which includes 9,181 automotive customer locations as of December 31, the most recent number available to the public. Its selling software tools include Elad CRM, digital retail provider Roadster and Salty Dot Inc. , an insurance technology company that allows consumers to purchase auto insurance at the same time they buy a car.

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