CDK Global to buy back $350 million in stock

HOFFMAN ESTATES - CDK Global, said it has agreed to an accelerated share repurchase with Bank of America Merrill Lynch to purchase $350 million of CDK's common stock.

Under the terms of the ASR agreement, CDK will make a $350 million payment to BofAML Tuesday and will receive from them an initial delivery of approximately 4.5 million shares of CDK's common stock.

The final number of shares to be purchased will be based on the average of the daily volume-weighted average price of CDK's common stock during the term of the ASR transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreement.

At settlement, under certain circumstances, CDK may be entitled to receive additional shares of CDK's common stock from BofAML or, under certain circumstances, CDK may be required to deliver shares of common stock or to make a cash payment, at CDK's election, to BofAML. The final settlement of the transaction under the ASR agreement is expected to occur during CDK's fiscal quarter ending Sept. 30.