Dealer software giant CDK Global Inc. has struck a deal to acquire Auto/Mate, a smaller rival in the dealership management system market, the companies said Wednesday.
The plan is for CDK to "integrate the Auto/Mate DMS into its product lineup to better address the full spectrum of dealership needs, providing dealers with the choice and flexibility to combine the Auto/Mate DMS product offerings with fully integrated access to the CDK solution suite," according to a statement from both companies.
"This planned acquisition reinforces CDK's commitment to dealers, regardless of size, by offering a broad range of products designed to improve dealership returns and the consumer experience," said Brian MacDonald, CEO of CDK Global, in the statement. "Auto/Mate's products are a natural fit with CDK solutions and provide an intuitive, flexible and fit-for-purpose DMS solution that will offer strong value to dealerships."
Auto/Mate, a privately held company in Albany, N.Y., has more than 1,000 new-car dealerships using its DMS products.
CDK, of Chicago, and fellow software giant Reynolds and Reynolds, of Dayton, Ohio, control more than 70 percent of the DMS market. Now CDK has extended its reach into more stores.
The transaction, expected to close this summer, has been approved by each company's board of directors but is subject to customary closing requirements and regulatory approvals. Terms were undisclosed.
Auto/Mate CEO Mike Esposito said in the statement: "I am confident the traditions of unparalleled customer service and ever-evolving technology that Auto/Mate customers have grown to expect will continue under CDK, and we are excited for the new opportunities that the combined companies will provide to help our customers succeed."
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More information at: Automotive News