CDK Global

CDK Global Inc.

Company type	Public (until 2022 acquisition)
Industry	Technology, Software, Data services
Predecessor	ADP Dealer Services
Founded	October 1, 2014 (2014-10-01) in United States
Founder	Spin-off from Automatic Data Processing (ADP)
Fate	Acquired by Brookfield Business Partners and institutional investors in 2022
Headquarters	Austin , United States
Area served	Worldwide, primarily United States
Products	Dealer management systems, software for automotive, heavy trucks, recreational vehicles, heavy machinery
Owner	Brookfield Business Partners and institutional investors (since 2022)
Website	www.cdkglobal.com

CDK Global Inc. is a United States-based multinational corporation with its main office located in Austin, Texas. The firm specializes in delivering data and technology services to sectors including automotive, heavy trucking, recreational vehicles, and heavy machinery.

Operating from 37 facilities spread over 25 countries, CDK Global distributes its products to customers in more than 100 nations, with the majority of its clientele situated within the United States. In terms of revenue, the company was ranked 911th on the Fortune 1000 list in 2020.

Products

CDK Global offers comprehensive IT and digital marketing solutions tailored for industries such as automotive, heavy trucks, recreation, and heavy equipment. Its product suite assists clients throughout the purchasing cycle by providing software for targeted advertising, sales management, financing, insurance, parts inventory, repairs, and maintenance. The company’s main competitors include Reynolds and Reynolds, Tekion, and Dealertrack.

History

The origins of CDK Global trace back to the Dealer Services division within Automatic Data Processing (ADP), established in 1973 following ADP's acquisitions of National Inventory Control System (NICS) and Computer System Inc. (CSI). These early acquisitions enabled computerized solutions for accounting, financial reporting, sales analytics, lease accounting, parts inventory control, customer relationship management, sales and service management systems, as well as payroll services specifically designed for automotive dealerships. Over a span of 41 years, ADP Dealer Services expanded its reach through upwards of 30 additional acquisitions.

Acquisitions and sales

In 2006, ADP completed the acquisition of BZ Results.

On October 1, 2014, ADP Dealer Services was spun off to form an independent entity named CDK Global. The company’s name is derived from significant acquisitions: 'C' representing Cobalt Digital Marketing; 'D' originating from ADP Dealer Services itself; and 'K' coming from Kerridge Computer Company—a UK-based dealer management system provider acquired in 2005.

In May 2017, CDK Global announced intentions to acquire Auto/Mate Dealership Systems, a competing dealer management system provider; however, this transaction was halted by the Federal Trade Commission in March 2018 due to antitrust concerns related to market concentration.

In 2020, CDK Global divested its international operations—renamed Keyloop—to Francisco Partners to concentrate on its North American market focus.

On April 7, 2022, Brookfield Business Partners along with institutional investors reached an agreement to purchase CDK Global for $8.3 billion. This acquisition offered shareholders $54.87 per share—a premium of 30%. The transaction was finalized on July 6, 2022.

Ransomware Incident of June 2024

On June 19, 2024, CDK experienced a ransomware breach that interrupted operations for thousands of automotive dealerships throughout the United States and Canada. The cybercriminal group identified as BlackSuit, linked to Eastern Europe and Russia, took responsibility and demanded a ransom in the tens of millions. By June 21, CDK transferred $25 million in bitcoin to a cryptocurrency wallet associated with BlackSuit. Efforts to restore services commenced on June 23, with complete system recovery anticipated after June 30. By July 4, access for nearly all dealers had been reinstated.

In the aftermath of the cyberattack, shares of CDK’s parent company declined by over 5.7%, while major automotive retailers such as Sonic Automotive, Group 1 Automotive, and AutoNation experienced stock drops reaching up to 4.4%. JD Power projected a potential 7.2% reduction in U.S. retail vehicle sales for June 2024 compared to the previous year. At least eight lawsuits alleging negligence were filed by dealerships impacted by the disruption. Within two weeks, dealerships reported combined financial damages estimated at approximately $605 million.

Antitrust Litigation

In May 2017, data integration firm Authenticom filed a lawsuit against CDK and fellow DMS provider Reynolds and Reynolds, accusing them of engaging in anti-competitive behavior and violating antitrust laws by collaborating to restrict third-party access to their data platforms, effectively establishing a duopoly. In July 2017, District Judge James Peterson issued a preliminary injunction against both companies after finding credible evidence of an unlawful horizontal agreement aimed at dividing the data integration market and obstructing competitors. The court ordered CDK and Reynolds to stop preventing Authenticom from delivering services to authorized dealerships. In November 2020, CDK reached a settlement with Authenticom that included a one-time monetary payment.

Additionally, CDK consented to pay $100 million plus $250,000 for notification and administrative expenses to resolve allegations that it conspired with Reynolds to impose illegal pricing for DMS and Data Integration Services. Dealerships that conducted business with CDK between September 1, 2013, and August 15, 2024, were eligible to participate in a class action lawsuit culminating in a settlement approved on February 25, 2025.

In 2018, software provider Autoloop initiated an antitrust suit against CDK, accusing the company of limiting data accessibility and forcing vendors to incur inflated fees. This case was granted class action status in July 2024.

Later in December 2024, competitor Tekion filed a federal antitrust complaint against CDK alleging monopolistic practices in the DMS sector by delaying or denying dealers’ access to operational data. Tekion asserted that these tactics impeded dealers’ ability to switch platforms while driving up costs.