Brookfield To Buy Automotive Software Maker CDK Global For $6.41 Billion
Summary
Brookfield Business Partners is buying CDK Global Inc for $6.41 billion in cash, taking private the last major publicly traded provider of software to auto dealers and manufacturers. The purchase announced on Thursday gives the private equity firm a strong foothold in an industry estimated to reach $29.3 billion by 2026, thanks to the rising software demands of companies from electric-vehicle startups to established auto manufacturers. As a private company, theyll be able to continue this transition and grow their digital presence," Oppenheimer analyst Ian Zaffino said. Brookfield said the deal was a bet on CDK Globals subscription-based software model and that it expects the company to benefit from a rise in consolidation across the dealership industry. For the latest auto news and reviews, follow carandbike.com on Twitter, Facebook, and subscribe to our YouTube channel.
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