CDK Global Inc. is expanding its online sales capabilities with the acquisition of digital retailing provider Roadster, the company said Wednesday.
The Hoffman Estates, Ill., dealership management system giant said in a regulatory filing that it is acquiring Roadster, of Palo Alto, Calif., for $360 million in an all-cash deal, and Roadster will become a wholly owned subsidiary of CDK.
CDK said the deal closed Wednesday.
"Consumers have shown they are increasingly more willing to purchase big-ticket items online, and this trend has quickly accelerated during the pandemic," CDK CEO Brian Krzanich said in a statement.
"To meet their expectations, the automotive industry requires integrations of the right technology, data and infrastructure to better connect its online and in-store experiences. Roadster's consumer-focused approach and innovative technology will significantly contribute to our modern retailing efforts to create a seamless omnichannel vehicle-buying process that puts dealers at the heart of the relationship."
CDK said adding Roadster to its roster of dealership technology tools will allow the company's dealership customers to compete against online used-vehicle retailers that have grown their own businesses during the pandemic. Dealers will be able to sell vehicles entirely online, and consumers will be able to complete a vehicle purchase online or at a dealership.
The company says Roadster provides more opportunities in the auto retail market through new automaker partnerships and more options for dealerships. CDK also said it will draw on its Fortellis open network development platform to connect into dealerships' back-end systems, no matter which DMS or customer relationship management system a dealership uses.
"We're proud of the work we've done at Roadster over the last eight years to modernize the car-buying experience and reduce the time it takes to purchase a vehicle," Roadster CEO Andy Moss said in a statement. "Automotive retailing is extremely complex, and the best way to create a truly frictionless, end-to-end buying experience is to fully integrate our technology with the back-end systems that power dealership sales, finance and operations, regardless of provider."
CDK said in a regulatory filing that it formed a wholly owned subsidiary, Spyder Merger Corp., for purposes of the merger with Roadster. Roadster will continue as a CDK subsidiary.
CDK said Roadster will have an immediate effect on CDK's revenue and revenue growth, and the company will share details of the financial impact of the Roadster acquisition when it provides fiscal-year 2022 guidance with its fiscal 2021 full-year earnings results.