Software maker CDK Global to be taken private by Brookfield for $6.41bn

Apr 7, 2022 | News

Automotive software maker CDK Global Inc said on Thursday it would be taken private by Brookfield Business Partners for $6.41bn in cash.

The deal will pay CDK investors $54.87 for each share held, a premium of 12% to the company’s closing price on Wednesday. The enterprise value of the deal is $8.3 billion.

CDK, based in Hoffman Estates, Illinois, makes technology and software for retailers and auto manufacturers and serves more than 15,000 retail locations in North America.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

Sign up

Its purchase by Brookfield Business Partners, a unit of Brookfield Asset Management, is expected to close in the third quarter of 2022.

CDK shares were 10.8% higher in pre-market trading on Thursday.

The company in late 2020 sold its international business for $1.45 billion to investment firm Francisco Partners.

Source: Reuters

Can’t stop reading? Read more