CDK Global sells international arm for $1.45 billion

HOFFMAN ESTATES - CDK Global Inc. Monday said it has reached an agreement to sell its CDK International business to Francisco Partners, a global technology investment firm based in San Francisco, for $1.45 billion.

CDK Global is a provider of information technology, dealer management systems and digital marketing solutions for automotive retailers. The company expects the transaction to be completed during the third quarter of its fiscal year 2021, subject to customary closing conditions and regulatory approval.

"With this transaction, we can now focus on executing the next phase of our growth journey and spotlight our attention on our North America business," said Brian Krzanich, CDK president and chief executive officer.

Hoffman Estates-based CDK said it will use proceeds of the transaction for general corporate purposes, including the pay down of debt to strengthen its balance sheet.

CDK International largely operated independently, with specific technology, sales and operations tailored to the international auto markets, said Joe Tautges, CDK chief operating officer and interim chief financial officer.