Advances CDK’s Commitment to Dealers
Brings Advanced Technology Solutions to More
Dealers for a Better Consumer Experience
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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version on businesswire.com: http://www.businesswire.com/news/home/20170524005251/en/
CDK Investor Contact:Katie
Coleman847.485.4650katherine.coleman@cdk.comorCDK Media
Contact:David
Webster469.222.3667david.webster@aberdeenstrategies.comorAuto/Mate
Media Contacts:Mike
Esposito877.340.2677mesposito@automate.comorLarry
Colson877.340.2677LColson@automate.com
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