reverson Jr. Refresher
- First Name:
- Garber Automotive Group
- Flint, MI
WOW! What are everyone’s thoughts on this?
CDK Global Announces Plan to Divest Digital Marketing Business
HOFFMAN ESTATES, Ill., June 27, 2019 (GLOBE NEWSWIRE) — CDK Global, Inc. (Nasdaq:CDK) (the “Company”) today announced a plan to divest its Digital Marketing Business, comprising all of the assets of its Advertising North America business segment and certain assets of its Retail Solutions North America segment related to mobile advertising solutions and website services.
“Following a comprehensive strategic review we have made the decision to divest the Digital Marketing Business,” said Brian Krzanich, president and chief executive officer. “Exiting the Digital Marketing Business allows the management team to focus on the building momentum in the core auto software business and to accelerate growth in fiscal 2020. We believe the Digital Marketing Business is an attractive asset for someone who is better positioned to leverage the technology platform and management team that we have built. During this transition period we remain committed to our CDK Digital Marketing customers, and will continue to support our comprehensive suite of Digital Marketing technologies and services.”
This decision was reached after a thorough evaluation of the CDK portfolio, and aligns with the Company’s strategy to focus on the core suite of SaaS software and technology solutions for the markets it serves through the Retail Solutions North America and CDK International segments. Beginning with the fourth quarter, the Digital Marketing Business will be presented as discontinued operations. The Company has engaged Allen & Company to identify potential buyers and evaluate proposals for the Digital Marketing Business.
Further details regarding this decision can be found in a Current Report on Form 8-K filed with the Securities and Exchange Commission on June 27, 2019. The fiscal fourth quarter and fiscal year ending June 30, 2019 earnings call will be held in early August, and will include updates regarding these matters, as well as guidance for fiscal 2020 and an update to the capital allocation strategy.