Krzanich, on the call with analysts, described the Cox settlement as "predominately the larger of the lawsuits that are out there." He called the settlement a bellwether case, illustrative of CDK's efforts to mediate. "We're always better working together toward business rather than sitting with lawyers in courtrooms arguing about things," he told analysts.
Cox also will beta test CDK's new repair order application program interface, or API, on its Fortellis platform. Cox is the largest participant in CDK's Partner Program, which has more than 350 businesses that provide products for dealers and automakers using CDK data integration. Cox will download the repair order capability and test the tool.
"The repair order API is important, as it allows a simpler, more cost-effective way for our partners to link their service and repair software with CDK DMS," Krzanich told analysts.
A CDK spokeswoman declined to comment on the specifics of its contract with Cox. A Cox spokesman also declined to comment on specifics of its new relationship but confirmed the settlement.
"We believe this step will allow both companies to move forward in a positive and productive way for the benefit of our mutual dealer partners and the broader automotive industry," a Cox spokesman wrote in an email to Automotive News.
CDK is making changes to its Partner Program and wants to transition participants to leverage its open API Fortellis platform, Krzanich told analysts.
"CDK's new agreement with Cox Automotive will negatively impact [fiscal year 2020] revenue by 1 percent due to a reduction in ... the fees CDK charges to third parties for access to its DMS," Rayna Kumar, an analyst with Evercore ISI, wrote in a note to investors last week.