CDK Global, Inc., an RV dealer management software systems company, will be acquired by Brookfield Business Partners for $8.3 billion.
Under merger agreement terms, Brookfield will initiate a tender offer to purchase outstanding shares of CDK. CDK shareholders will receive $54.87 per share in cash upon completion of the transaction. The agreement was unanimously approved by CDK’s Board of Directors.
“This transaction is an exciting next step for CDK that provides our shareholders with both certainty of value and a meaningful premium. 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,” said Brian Krzanich, president and CEO of CDK Global. “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.”
Brookfield and CDK share a common vision to transform and improve the entire consumer automotive retail experience from sourcing to retail sale, Krzanich said.
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, the company said. Today, CDK serves over 15,000 retail locations in North America.
