Automotive retail technology company CDK Global is set to be acquired by Brookfield Business Partners for $8.3 billion.
The company entered into a definitive agreement to be acquired by Brookfield Business Partners, together with institutional partners which are collectively known as “Brookfield.” As part of the merger agreement, Brookfield started with a tender offer to acquire all of the outstanding shares of CDK. Shareholders will receive $54.87 per share in cash when the transaction is complete.
“This transaction is an exciting next step for CDK that provides our shareholders with both certainty of value and a meaningful premium,” said Brian Krzanich, President and CEO of CDK Global. “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.”
He adds that CDK’s Board of Directors consulted with the company’s outside advisors and evaluated a range of alternatives over several months before moving ahead with Brookfield.
“Brookfield recognizes the unique value our products bring to more than 15,000 retail locations in North America and shares our vision of transforming the future of automotive retail,” said Krzanich. “We are excited about the opportunity to further sharpen our focus on elevating the dealer and consumer experience when selling, buying or owning a vehicle.”
CDK said the closing of the tender offer will be subject to certain conditions—but that once it is complete, Brookfield will acquire the remaining shares not tendered in the tender offer through a second-step merger at the same price. That transaction should close in the third quarter of the year.