CDK Global

CDK Global provides integrated information technology and digital marketing to the automotive, heavy truck, recreation, and heavy equipment industries.{{Cite web|url=https://www.wsj.com/market-data/quotes/CDK/company-people|title=CDK | CDK Global Inc. Company Profile & Executives - WSJ|website=www.wsj.com}} The company's products help to integrate clients buying processes and include targeted advertising and marketing, as well as products for the sale, financing, insuring, parts supply, repair, and maintenance of vehicles.{{Cite web|title=CDK Global Reports Strong Revenue Growth and Margin Expansion for the First Quarter of Fiscal 2017 and Increases Full Year Earnings Outlook | CDK Global Inc.|url=https://investors.cdkglobal.com/news-releases/news-release-details/cdk-global-reports-strong-revenue-growth-and-margin-expansion|website=investors.cdkglobal.com|access-date=2021-04-23|archive-date=2021-04-23|archive-url=https://web.archive.org/web/20210423204651/https://investors.cdkglobal.com/news-releases/news-release-details/cdk-global-reports-strong-revenue-growth-and-margin-expansion|url-status=dead}} Competitors include Reynolds and Reynolds, Tekion, and Dealertrack.{{Cite web|last=Gardner|first=Greg|title=Tekion Sees The Cloud As Key To Streamlining Auto Retailing|url=https://www.forbes.com/sites/greggardner/2021/04/15/tekion-sees-the-cloud-as-key-to-streamlining-auto-retailing/|website=Forbes}}

The company has its origins as the Dealer Services division of Automatic Data Processing (ADP), which was formed in 1973 after ADP acquired National Inventory Control System, Portland OR (NICS) and Computer System Inc., Cincinnati, OH (CSI) providing computerized Accounting, Financial Reporting, Sales Analysis, Lease Accounting, Parts Inventory Control, Customer Relations, Management Systems for both Sales and Service, and Payroll Services for automotive dealerships.{{Cite book|url=https://archive.org/details/sim_cars-and-trucks_January-december-1973_45_index/page/n3/mode/2up?q=ADP+|title=Cars and Trucks January-December 1973: Vol 45 Index|date=1974-01-01|publisher=National Automobile Dealers Association |pages=5|language=English}}{{Cite book|url=https://archive.org/details/VAP-ArthurtoAz/page/n610/mode/2up|title=Vendor Profile: A Publication from INPUT's Vendor Analysis Program|others=Input Reports and Research Archive Project|year=1976 |pages=611}} As ADP Dealer Services, the division was subsequently built up of more than 30 acquisitions completed over the next 41 years.{{cite web|date=October 18, 2014|title=CDK Global: A Spin-Off Worth Avoiding|url=https://seekingalpha.com/article/2569425-cdk-global-a-spin-off-worth-avoiding|access-date=2021-04-24|website=seekingalpha.com}}

On October 1, 2014, ADP Dealer Services division was spun-off to form the independent company CDK Global.{{Cite web|url=https://www.bloomberg.com/profile/company/C2G:GR|title=CDK Global Inc - Company Profile and News|website=Bloomberg.com}}{{Cite web|title=EX-99.1|url=https://www.sec.gov/Archives/edgar/data/8670/000119312514360102/d795871dex991.htm|access-date=2021-09-01|website=www.sec.gov}} The CDK in the company's name was inspired from different acquisitions; C from Cobalt Digital Marketing,{{Cite web|author=|date=2010-07-12|title=ADP Buying Cobalt Group for $400 Million|url=https://www.pehub.com/adp-buying-cobalt-group-for-400-million/|access-date=2021-09-01|website=PE Hub|language=en-US}} D from the original ADP Dealer Services business, and K from Kerridge Computer Company, a UK-based dealer management system (DMS) supplier acquired by ADP in 2005.{{Cite web|date=2014-08-19|title=ADP Reveals Post-Spin Name of Dealer Services Business|url=https://www.autoremarketing.com/technology/adp-reveals-post-spin-name-of-dealer-services-business|access-date=2021-09-01|website=Auto Remarketing|language=en}}{{Cite web|title=ADP Dealer Services under new name - CDK Global|url=https://www.am-online.com/news/2014/8/22/adp-dealer-services-under-new-name---cdk-global/36692/|website=www.am-online.com}}

In 2006, ADP acquired BZ Results.{{Cite web |last=Banks |first=Cliff |date=2006-03-17 |title=ADP Acquires BZ Results |url=https://www.wardsauto.com/news-analysis/adp-acquires-bz-results |url-status=live |archive-url=https://web.archive.org/web/20220727142013/https://www.wardsauto.com/news-analysis/adp-acquires-bz-results |archive-date=2022-07-27 |access-date=2024-06-29 |website=Ward's}}

In May 2017, CDK Global announced its intention to acquire rival DMS supplier Auto/Mate Dealership Systems,{{Cite web |last=Finlay |first=Steve |date=2017-05-24 |title=Automotive Info Tech Giant CDK to Acquire Auto/Mate |url=https://www.wardsauto.com/dealers/automotive-info-tech-giant-cdk-to-acquire-auto-mate |archive-url=https://web.archive.org/web/20240627202612/https://www.wardsauto.com/dealers/automotive-info-tech-giant-cdk-to-acquire-auto-mate |archive-date=2024-06-27 |access-date=2024-06-27 |website=Ward's |language=en}} but the proposed acquisition was blocked by the Federal Trade Commission in March 2018 on the grounds that it would reduce competition in an already concentrated market.{{Cite web |date=2018-03-20 |title=FTC Blocks CDK Global's Acquisition of Auto/Mate |url=https://www.fi-magazine.com/323799/ftc-blocks-cdk-globals-acquisition-of-auto-mate |url-status=live |archive-url=https://web.archive.org/web/20230329162550/https://www.fi-magazine.com/323799/ftc-blocks-cdk-globals-acquisition-of-auto-mate |archive-date=2023-03-29 |access-date=2024-06-27 |website=F&I and Showroom |language=en-US}}{{Cite web |date=2018-03-20 |title=FTC Challenges CDK Global, Inc.'s Proposed Acquisition of Competitor Auto/Mate, Inc. |url=https://www.ftc.gov/news-events/news/press-releases/2018/03/ftc-challenges-cdk-global-incs-proposed-acquisition-competitor-automate-inc |url-status=live |archive-url=https://web.archive.org/web/20230922012105/https://www.ftc.gov/news-events/news/press-releases/2018/03/ftc-challenges-cdk-global-incs-proposed-acquisition-competitor-automate-inc |archive-date=2023-09-22 |access-date=2024-06-27 |website=Federal Trade Commission |language=en}}

In 2020, CDK Global announced the sale of its international operations (to be called Keyloop) to Francisco Partners, as an effort to focus more on its North American business.{{Cite web|url=https://www.chicagobusiness.com/technology/cdk-global-completes-145-billion-sale-international-unit|title=CDK Global completes $1.45 billion sale of international unit|date=March 1, 2021|website=Crain's Chicago Business}}{{Cite web|url=https://finance.yahoo.com/news/cdk-global-sell-international-business-133000673.html|title=CDK Global to Sell International Business to Francisco Partners for $1.45 Billion|website=finance.yahoo.com|date=30 November 2020 }}

On April 7, 2022, CDK Global agreed to be acquired by Brookfield Business Partners and institutional partners for a total enterprise value of $8.3 billion. The deal offered CDK investors $54.87 for each share held, representing a 30% premium.{{cite web |url=https://www.reuters.com/technology/software-maker-cdk-global-be-taken-private-by-brookfield-641-bln-2022-04-07/ |title=Brookfield to buy automotive software maker CDK Global for $6.41 bln |date=April 7, 2022 |work=Reuters |last1=Balu |first1=Nivedita |last2=Mathews |first2=Eva}}{{Cite web |date=2022-04-07 |title=CDK Global to Be Acquired by Brookfield for $54.87 Per Share in Cash |url=https://www.businesswire.com/news/home/20220407005532/en/CDK-Global-to-Be-Acquired-by-Brookfield-for-54.87-Per-Share-in-Cash |access-date=2022-04-07 |website=www.businesswire.com |language=en}} Brookfield completed the deal on July 6, 2022.{{Cite web |date=2022-07-06 |title=CDK Completes $8.3 Billion Sale to Brookfield |url=https://www.paulweiss.com/practices/transactional/mergers-acquisitions/news/cdk-completes-83-billion-sale-to-brookfield?id=43399 |access-date=2022-08-07 |website=www.paulweiss.com/ |language=en}}{{Cite web |date=2022-07-22 |title=CDK Global completes sale to Brookfield—what does this mean for dealer partners? |url=https://www.cbtnews.com/cdk-global-completes-sale-to-brookfield-what-does-this-mean-for-dealer-partners/ |access-date=2022-08-07 |website=www.cbtnews.com/ |language=en}}

In May 2017, CDK was sued, along with DMS supplier Reynolds and Reynolds, by data integration service provider Authenticom, which alleged that the two companies engaged in anti-competitive conduct and violated antitrust law by conspiring to block third-party access to their data systems in order to create a duopoly.{{Cite news |last=Lutz |first=Hannah |date=2017-05-02 |title=Reynolds, CDK hit by another antitrust lawsuit |url=https://www.autonews.com/article/20170502/OEM06/170509940/reynolds-cdk-hit-by-another-antitrust-lawsuit |url-status=live |archive-url=https://web.archive.org/web/20220814002840/https://www.autonews.com/article/20170502/OEM06/170509940/reynolds-cdk-hit-by-another-antitrust-lawsuit |archive-date=2022-08-14 |access-date=2024-06-27 |work=Automotive News}}{{Cite web |last=Gnau |first=Thomas |date=2017-07-18 |title=Federal judge rules against Reynolds and Reynolds |url=https://www.daytondailynews.com/business/federal-judge-rules-against-reynolds-and-reynolds/hNuylUEtuV4bbjhd1fFDtK/ |url-status=live |archive-url=https://web.archive.org/web/20221129111548/https://www.daytondailynews.com/business/federal-judge-rules-against-reynolds-and-reynolds/hNuylUEtuV4bbjhd1fFDtK/ |archive-date=2022-11-29 |access-date=2024-06-27 |website=Dayton Daily News |language=English}} In July 2017, District Judge James Peterson granted a preliminary injunction against CDK and Reynolds and Reynolds, ruling that there was sufficient evidence to find "the existence of a per se illegal horizontal conspiracy" between CDK and Reynolds and Reynolds to divide the data integration market between them and block competitors, and requiring the two companies to "cease blocking Authenticom" from providing "data integration services to dealers who authorize Authenticom to provide this service."{{Cite web |last=Kamal |first=Tariq |date=2017-07-18 |title=Authenticom Granted Preliminary Injunction in CDK, Reynolds Lawsuit |url=https://www.fi-magazine.com/323304/authenticom-granted-preliminary-injunction-in-cdk-reynolds-lawsuit |url-status=live |archive-url=https://web.archive.org/web/20220517141711/https://www.fi-magazine.com/323304/authenticom-granted-preliminary-injunction-in-cdk-reynolds-lawsuit |archive-date=2022-05-17 |access-date=2024-06-27 |website=F&I and Showroom |language=en-US}} In November 2020, CDK settled its lawsuit with Authenticom, agreeing to make a one-time cash payment to Authenticom.{{Cite news |last=VanHulle |first=Lindsay |date=2020-11-09 |title=CDK settles antitrust lawsuit over data access |url=https://www.autonews.com/retail/cdk-settles-antitrust-lawsuit-over-data-access |url-status=live |archive-url=https://web.archive.org/web/20201109050811/https://www.autonews.com/retail/cdk-settles-antitrust-lawsuit-over-data-access |archive-date=2020-11-09 |access-date=2024-06-27 |work=Automotive News}}

CDK agreed to pay $100 million plus $250,000 for notice and administration costs to resolve claims involving an alleged conspiracy by CDK and Reynolds to charge unlawful prices in the markets for DMS Services and Data Integration Services. Dealerships doing business with CDK from September 1, 2013 through August 15, 2024 were invited to join a class action lawsuit that paid out the settlement. On February 25, 2025, the court approved the settlement payout.[https://www.dealershipclassdmssettlement.com/] [https://www.ilnd.uscourts.gov/mdl-details.aspx?ezwhUXOtzntNkzYvqtYcbw==]

On June 19, 2024, CDK experienced a ransomware attack that took most of its services offline, disrupting thousands of car dealerships across the US and Canada.{{Cite web |last1=Robledo |first1=Anthony |last2=Schulz |first2=Bailey |last3=Lin-Fisher |first3=Betty |title=Auto dealer system updates to take 'several days' following CDK hack, ransom demand |url=https://www.usatoday.com/story/money/cars/2024/06/21/cdk-cyberattack-ransom-demands-report/74175607007/ |access-date=2024-06-23 |website=USA Today |language=en-US}} An Eastern European and Russian hacker group, thought by security researchers to be BlackSuit, claimed responsibility and demanded tens of millions of dollars in ransom.{{Cite web |last=Visconti |first=Zachary |date=2024-06-24 |title=Dealership system hackers seemingly identified as restorations begin |url=https://www.teslarati.com/dealership-hackers-identified-restorations/ |access-date=2024-06-25 |website=TESLARATI |language=en-US}} On June 21, CDK paid $25 million in bitcoin to a cryptocurrency account connected with BlackSuit, and on June 23, began the process of restoring services, later advising that the work would not be completed before June 30.{{Cite news |date=June 23, 2024 |title=CDK Global begins to restore systems after cyber hack hits thousands of retailers |url=https://www.reuters.com/technology/cybersecurity/cdk-global-begins-restore-systems-after-cyber-hack-bloomberg-news-reports-2024-06-23/ |access-date=June 23, 2024 |work=Reuters}}{{Cite web |date=2024-06-25 |title=CDK Global says outages to continue through June 30 after supplier hack |url=https://au.news.yahoo.com/cdk-global-says-outages-continue-204816502.html |access-date=2024-06-26 |website=Yahoo News |language=en-AU}} By July 4, access for nearly all dealers had been restored.{{Cite web |last=Maruf |first=Ramishah |date=2024-07-02 |title=CDK Global says 'substantially all' dealers back online after crippling hack {{!}} CNN Business |url=https://www.cnn.com/2024/07/02/business/cdk-global-dealers-online/index.html |access-date=2024-07-04 |website=CNN |language=en}}

Shares in CDK's parent company lost over 5.7% value in the wake of the attack,{{Cite web |title=Software company plans to pay tens of millions in ransom to hackers who crippled car dealerships across North America |url=https://fortune.com/2024/06/22/cdk-ransomware-attack-payment-hackers-tens-millions-car-dealerships/ |access-date=2024-06-25 |website=Fortune |language=en}} while share prices of large auto dealers Sonic, Group 1 and AutoNation dropped up to 4.4%.{{Cite web |title=Car Sellers Warn Investors of Possible Financial Hit From Cyberattack |url=https://www.bloomberg.com/news/articles/2024-06-24/car-sellers-warn-investors-of-possible-material-hit-in-cdk-hack?embedded-checkout=true |access-date=2024-06-25 |website=Bloomberg}} JD Power estimated that due to the outage, U.S. retail unit sales in June 2024 would decrease by up to 7.2% from June 2023.{{Cite news |last=Lareau |first=Jamie |date=June 27, 2024 |title=June new vehicle sales expected to take hit from cyberattack on dealer software |url=https://eu.freep.com/story/money/cars/2024/06/27/new-car-sales-june-cdk-cyberattack-dealer-software/74229483007/ |access-date=June 27, 2024 |work=Detroit Free Press}} At least eight lawsuits alleging negligence were filed against CDK by dealerships whose operations were affected by the outage.{{Cite web |date=2024-07-03 |title=CDK Global faces multiple lawsuits from dealerships crippled by cyberattack |url=https://www.cbsnews.com/news/cdk-global-lawsuits-cyberattack/ |access-date=2024-07-04 |website=CBS News |language=en-US}} Within the first two weeks, the dealers recorded financial losses amounting to approximately $605 million.{{Cite news |last=Mariano |first=Mike |date=July 15, 2024 |title=CDK Global: Lessons From the Car Dealership Cyberattack |url=https://www.ispartnersllc.com/blog/car-dealership-cyberattack/ }} {{Cite news |last=Anderson Economic Group |first= |date=July 1, 2024 |title=Anderson Economic Group estimated direct losses for affected dealers due to business interruptions from recent cyberattacks |url=https://www.andersoneconomicgroup.com/dealer-losses-due-to-cdk-cyberattack-to-reach-944-million-in-first-three-weeks/?highlight=CDK}}

{{Reflist}}

{{Finance links historical

| name = CDK Global, Inc.

| sec_cik = 1609702

}}

{{authority control}}

Category:Software companies of the United States

Category:Companies based in Cook County, Illinois

Category:Hoffman Estates, Illinois

Category:American companies established in 2014

Category:Software companies established in 2014

Category:Companies formerly listed on the Nasdaq

Category:Corporate spin-offs

Category:2022 mergers and acquisitions

Category:American subsidiaries of foreign companies

Category:Private equity portfolio companies