CDK Global Authorized to Purchase an Initial Ten Million Shares of Its Common Stock
January 21 2015 - 4:21PM
The Board of Directors of CDK Global, Inc. (Nasdaq:CDK) has
authorized the purchase of ten million shares of its common stock.
"We are pleased to announce a ten million share repurchase
authorization. We continue to evaluate how to best deploy our free
cash flow to generate long term shareholder value and this is a
prudent next step in our plan. We have excess cash on our balance
sheet and intend to utilize this authorization to offset dilution
from employee equity compensation plans and return capital to our
shareholders," said Steve Anenen, President and Chief Executive
Officer, CDK Global. "We are confident that we will generate
increasing levels of free cash flow which will enable us to invest
while also returning capital through our announced dividend and
share buyback authorization," Anenen concluded.
Under the authorization for the stock repurchase program, CDK
may purchase its common stock in the open market or in privately
negotiated transactions. The actual timing, number and price of any
shares to be repurchased will be determined at management's
discretion and will depend on a number of factors, which may
include the market price of the shares, general market and economic
conditions, and other potential uses for free cash flow. This
authorization is effective immediately and will expire on January
19, 2018.
About CDK Global
With nearly $2 billion in revenues, CDK GlobalTM is the
largest global provider of integrated information technology and
digital marketing solutions to the automotive retail industry and
adjacencies. CDK Global provides solutions in more than 100
countries around the world, serving more than 26,000 retail
locations and most automotive manufacturers. CDK Global's solutions
automate and integrate critical workflow processes from pre-sale
targeted advertising and marketing campaigns to the sale,
financing, insurance, parts supply, repair and maintenance of
vehicles, with an increasing focus on utilizing data analytics and
predictive intelligence. Visit cdkglobal.com.
Forward-Looking Statements
This document contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding CDK Global's intention to make share
repurchases and to declare and pay future dividends. Statements
that are not historical in nature and which may be identified by
the use of words like "expects," "assumes," "projects,"
"anticipates," "estimates," "we believe," "could be" and other
words of similar meaning, are 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.
The declaration and payment of future dividends, as well as the
amount thereof, are subject to the discretion of CDK Global's Board
of Directors. Any share repurchase and the amount and size of any
future dividends will depend upon the CDK Global's results of
operations, financial condition, capital levels, cash requirements,
future prospects and other factors. There can be no assurance that
CDK Global will make any share repurchases or that it will declare
and pay any dividends in the future. The statements in this press
release are made as of the date of this press release, even if
subsequently made available by CDK Global on its website or
otherwise. CDK Global disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. These risks and uncertainties, along
with the risk factors discussed in CDK Global's reports filed with
the Securities and Exchange Commission (SEC), including those
discussed under "Item 1A. Risk Factors" in CDK Global's
Registration Statement on Form 10 for the fiscal year ended June
30, 2014 and its Form 10-Q for the fiscal quarter ended September
30, 2014, should be considered in evaluating any forward-looking
statements contained herein. These filings can be found on CDK
Global's website at www.cdkglobal.com and the SEC's website at
www.sec.gov.
CONTACT: Investor Relations Contacts:
Elena Rosellen
973.588.2511
elena.rosellen@cdk.com
Jennifer Gaumond
847.485.4424
jennifer.gaumond@cdk.com
Media Contact:
Michelle Benko
847.485.4389
michelle.benko@cdk.com
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