CDK Global Inc. is expanding its online sales capabilities with the acquisition of digital retailing provider Roadster. the company said on Wednesday.
Hoffman Estates, Ill., said in a regulatory filing that it is acquiring Roadster of Palo Alto, Calif., and a wholly owned subsidiary of Roadster CDK, in an all-cash deal for $360 million. The company will become
CDK said the deal closed on Wednesday.
“Consumers have shown they are willing to buy big-ticket items online, and this trend has accelerated during the pandemic,” CDK CEO Brian Krzanich said in a statement.
“To meet their expectations, the automotive industry needs the right technology, data and infrastructure integration to better connect their online and in-store experiences. Roadster’s consumer-centric approach and innovative technology are our Modern retailing will contribute significantly to the effort to create a seamless omnichannel vehicle-buying process that puts dealers at the center of the relationship.”
CDK said adding the Roadster to its roster of dealership technology tools will allow the company’s dealership customers to compete against online used-vehicle retailers that have developed their own businesses during the pandemic. Dealers will be able to sell vehicles completely online, and consumers will be able to complete vehicle purchases online or at dealerships.
The company says the Roadster offers more opportunities in the auto retail market through new automaker partnerships and more options for dealerships. CDK also said it will draw on its Fortellis open network development platform to connect to the dealership’s back-end systems, regardless of whether the DMS or customer relationship management system the dealership uses.
“We are proud of the work we have done at Roadster over the past eight years to modernize the car buying experience and reduce the time it takes to buy a vehicle,” Roadster CEO Andy Moss said in a statement. “Automotive retailing is extremely complex, and the best way to create a truly frictionless, end-to-end shopping experience is to fully integrate our technology with back-end systems that allow dealership sales, regardless of provider, Powers finance and operations.”
CDK said in a regulatory filing that it formed a wholly owned subsidiary, Spyder Merger Corp., for purposes of its merger with Roadster. Roadster will continue as a subsidiary of CDK.
CDK said Roadster will have an immediate impact on CDK’s revenue and revenue growth, and the company will share details of the financial impact of the Roadster acquisition when it provides guidance along with fiscal year 2022 to fiscal 2021 full-year earnings results.
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