CHICAGO and ALBANY, N.Y. — CDK Global has entered a definitive agreement with Auto/Mate Dealership Systems to acquire the technology company, which provides a suite of dealer management systems (DMS) products and solutions to more than 1,000 new-car dealerships.
CDK plans to integrate the Auto/Mate DMS into its product lineup, 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 CDK President and CEO Brian MacDonald. “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,” McDonald added.
The transaction received approval from 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.
“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.
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.