Hoffman Estates-based automotive software firm acquired by private equity firm

Hoffman Estates-based CDK Global Inc., a provider of software used by auto dealerships and manufacturers, is being acquired by the private equity firm Brookfield Business Partners and other institutional partners to create a single company valued at $8.3 billion.

Under the merger agreement, CDK shareholders will receive $54.87 per share in cash upon completion of the transaction, which is expected in the third quarter of the year, according to the company.

The agreement was approved unanimously by CDK's board of directors, which recommended stockholders tender their shares in the offer, officials said.

"This transaction is an exciting next step for CDK that provides our shareholders with both certainty of value and a meaningful premium," CDK Global President and CEO Brian Krzanich said in a statement. "It also allows CDK to continue executing our long-term strategy to connect our industry at every level and create an open and collaborative future."

A subsidiary of Brookfield Asset Management's Private Equity Group, Brookfield Business Partners focuses on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position, according to the announcement.

Brookfield Asset Management is a leading global alternative asset manager with approximately $690 billion of assets under management.

"Brookfield recognizes the unique value our products bring to more than 15,000 retail locations in North America and shares our vision of transforming the future of automotive retail," Krzanich said. "We are excited about the opportunity to further sharpen our focus on elevating the dealer and consumer experience when selling, buying or owning a vehicle. I am grateful for our team's incredible work in providing an integrated experience - from sourcing to retail sale, and beyond."

CDK Global currently has about $2 billion in revenues and serves approximately 15,000 retail locations in North America.

The closing of the offer will be subject to certain conditions, including the tender of at least a majority of CDK's outstanding shares, the expiration or termination of the antitrust waiting period, and other customary conditions. CDK's common stock will then no longer be listed on the Nasdaq Global Select Market.

Following successful completion of the tender offer, Brookfield will acquire all remaining shares not tendered through a second-step merger at the same price.

Brian Krzanich
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