CDK Global Inc. is making a big push into online vehicle transactions with its acquisition last week of digital retailing provider Roadster.
The $360 million all-cash deal that closed Wednesday, June 2, gives CDK an established digital sales tool in Roadster, which counts nearly 2,000 dealership customers — a number of them in common with CDK. Roadster executives say linking up with CDK, the Hoffman Estates, Ill., dealership management system giant, also will help expand its business and improve the technology to make buying a vehicle online easier.
The merger will not affect dealerships that use Roadster's software today, said Roadster CEO Andy Moss. Going forward, he will head product and engineering for Roadster, of Palo Alto, Calif., and work more broadly on CDK's efforts to build what it calls a modern retail product strategy.