CHICAGO & ALBANY, N.Y.--(BUSINESS WIRE)--
CDK GLOBAL (Nasdaq:CDK) and Auto/Mate Dealership Systems today announced that they have entered into a definitive agreement whereby CDK will acquire Auto/Mate, a privately held company that provides a suite of DMS (Dealer Management Systems) products and solutions to over 1000 new car dealership sites.
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CDK plans to integrate the Auto/Mate DMS into its product lineup to better address the full spectrum of dealership needs, providing dealers with the choice and flexibility to combine the Auto/Mate DMS product offerings with fully integrated access to the CDK solution suite.
“This planned acquisition reinforces CDK’s commitment to dealers, regardless of size, by offering a broad range of products designed to improve dealership returns and the consumer experience,” said Brian MacDonald, president and CEO of CDK Global. “Auto/Mate’s products are a natural fit with CDK solutions and provide an intuitive, flexible and fit-for-purpose DMS solution that will offer strong value to dealerships.”
“My team and I are looking forward to working closely with our new and existing customers to deliver solutions that will provide them with numerous operational benefits, including speed, efficiency, and flexibility in managing their businesses and serving their customers,” said MacDonald.
“I am confident the traditions of unparalleled customer service and ever-evolving technology that Auto/Mate customers have grown to expect will continue under CDK, and we are excited for the new opportunities that the combined companies will provide to help our customers succeed,” said Mike Esposito, president and CEO of Auto/Mate.
The transaction has been approved by each company’s board of directors and is subject to customary closing requirements and regulatory approvals. The transaction is expected to close later this summer. Terms of the transaction were not disclosed. Presidio Technology Partners is acting as exclusive advisor and McNamee, Lochner, Titus & Williams, PC and Jenner & Block LLP are serving as legal counsel to Auto/Mate in the transaction.
About CDK Global
With more than $2 billion in revenues, CDK Global (Nasdaq: CDK) is a leading global provider of integrated information technology and digital marketing solutions to the automotive retail and adjacent industries. Focused on evolving the automotive retail experience, CDK Global provides solutions to dealers in more than 100 countries around the world, serving approximately 28,000 retail locations and most automotive manufacturers. CDK solutions automate and integrate all parts of the dealership and buying process from targeted digital advertising and marketing campaigns to the sale, financing, insuring, parts supply, repair and maintenance of vehicles. Visit www.cdkglobal.com.
About Auto/Mate
Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships, typically saving dealers thousands of dollars per month from their current provider. Our Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich DMS in use by more than 1,200 auto dealers nationwide. Auto/Mate has received DrivingSales Dealer Satisfaction Awards in 2012, 2013, 2014, 2015 and 2016. Auto/Mate has approximately 180 employees and is based in Albany, NY.
Auto/Mate’s employees have more than 1,000 years of combined experience working in franchised auto dealerships, the foundation of its “Designed By Car People For Car PeopleTM” slogan. Auto/Mate is committed to winning its customers’ business each and every month with no long-term contracts and free software upgrades. For more information follow us on Twitter @AutoMateDMS and subscribe to our blog at www.automate.com/blog.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, including statements in this document regarding the proposed transaction between CDK and Auto/Mate, the expected timetable for completing the proposed transaction, product integration, future financial and operating results, benefits and synergies of the proposed transaction and other opportunities for the combined company, and any other statements about CDK or Auto/Mate managements’ future expectations, beliefs, goals, plans or prospects may be forward looking statements. Words such as "might," "will," "may," "could," "should," "estimates," "expects," "continues," "contemplates," "anticipates," "projects," "plans," "potential," "predicts," "intends," "believes," "forecasts," "future," "assumes," and variations of such words or similar expressions are intended to identify forward-looking statements. These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed, or implied by, these forward-looking statements. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include: the ability to consummate the proposed transaction; the ability to obtain the requisite regulatory approvals; the ability of CDK to successfully integrate Auto/Mate’s operations and employees; the ability to realize anticipated synergies and cost savings; the potential impact of the announcement of the transaction or consummation of the transaction on relationships, including with employees, suppliers, customers and competitors; the ability to achieve revenue growth; national, international, regional and local economic, competitive and regulatory conditions and developments; technological developments; capital and credit markets conditions; inflation rates; interest rates; the political and economic stability of the auto industry; business and regulatory or legal decisions; the timing and success of business development efforts; the ability of CDK's significant stockholders and their affiliates to significantly influence CDK's decisions; and the risks described in CDK's reports filed with the Securities and Exchange Commission ("SEC"), including those discussed under "Part I, Item 1A. Risk Factors" in CDK's most recent Annual Report on Form 10-K and its most recent Quarterly Report on Form 10-Q. These filings can be found on CDK's website at www.cdkglobal.com and the SEC's website at www.sec.gov. All forward-looking statements speak only as of the date of this press release even if subsequently made available by CDK or Auto/Mate on their website or otherwise. CDK and Auto/Mate disclaim any obligation to update or revise any forward-looking statements that may be made to reflect new information or future events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.
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