ELEAD1ONE’s automotive retail front office applications and integrated customer service platform to complement the diversified product and service portfolio of CDK
HOFFMAN ESTATES, Ill. & ATLANTA–(BUSINESS WIRE)–CDK Global, Inc. (Nasdaq: CDK), a leading enabler of automotive commerce, today announced that it has entered into a definitive agreement to acquire ELEAD1ONE. The transaction has been unanimously approved by the CDK Board of Directors.
ELEAD1ONE’s automotive customer relationship management (CRM) software and call center solutions enable seamless interaction between sales, service and marketing operations to provide dealers with a best-in-class customer acquisition and retention platform. As a trusted software and business consultant to approximately 4,000 auto dealerships across North America, ELEAD1ONE stands ahead of the curve to service today’s changing and competitive automotive retail environment.
“As we looked at how best to rapidly address the needs of dealers in today’s evolving marketplace, we determined that ELEAD1ONE’s centerpiece CRM offering and fully integrated suite of layered applications fit well with our diversified product offerings,” said Brian MacDonald, president and CEO, CDK Global. “In addition, ELEAD1ONE’s well-regarded customer service capabilities will complement our focus on delivering an outstanding experience to its dealer customers. We look forward to helping dealers deliver a great customer experience with our combined products and services.”
“ELEAD1ONE dealers demand superior performance from the most advanced and integrated CRM software solution in the automotive industry,” said Hugh Hathcock, founder and CEO, ELEAD1ONE. “Recognized as a clear industry leader, ELEAD1ONE has consistently developed and delivered powerful cutting-edge dealer solutions, combining CRM with our successful ELEAD1ONE Contact Center, and Fixed Ops platform.” Judy Hathcock, founder and president of ELEAD1ONE added, “Together with CDK, the integrated companies will leverage vast resources to continue to invest in state-of-the-art information technology, innovative software application development, and highly effective communication platforms that emphasize superior user experiences with significant measurable ROI and reporting. Together we remain dedicated to focusing on innovation, support, and delivering the highest quality technology, products and services.”
The proposed transaction is subject to customary closing conditions. The value of the transaction was not disclosed and is expected to be modestly dilutive to adjusted earnings per share in Fiscal 2019 and accretive to adjusted earnings per share in Fiscal 2020. More details will be provided after closing. Portico Capital Securities LLC is acting as exclusive financial advisor and Cadwalader, Wickersham & Taft LLP is serving as legal counsel to ELEAD1ONE in the transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to CDK in the transaction.