CDK Global posts quarterly gains from ongoing operations as $8.3 billion acquisition awaits
CDK executives did not provide comment Thursday about the company’s earnings results.
CDK did not disclose the number of automotive DMS customer sites with its fiscal third quarter earnings results. As of Dec. 31, CDK counted 9,181 automotive DMS customer sites. It said in a news release Thursday that it saw “strong subscription growth due to contributions from site growth, revenue-per-site growth and the increased adoption of modern retail capability at dealerships” in its third quarter.
The company plans to be acquired later this year by investment firm Brookfield Business Partners in a deal valued at $8.3 billion. When the transaction closes, expected in the third quarter of this year, Brookfield will purchase all of CDK’s outstanding shares, with CDK shareholders receiving $54.87 per share in cash. Upon closing, CDK’s stock no longer will be publicly traded.
CDK’s share price closed at $54.42 on Thursday.
Fiscal Q3 revenue: $459.7 million, up 6% from a year earlier
Q3 net earnings attributable to CDK: $66.1 million, down 92% from a year earlier
Q3 net earnings from continuing operations: $70.1 million, up 49% from a year earlier
Q3 adjusted EBITDA: $174.5 million, up 5% from a year earlier
Fiscal 2022 guidance: CDK said Thursday it is not sharing financial guidance for its fiscal fourth quarter or for its 2022 fiscal year. The company in February had offered revenue guidance of $1.79 billion to $1.82 billion and net earnings attributable to CDK of $245 million to $275 million for the fiscal year.