Automotive software maker CDK Global Inc CDK-Q said on Thursday it would be taken private by Brookfield Business Partners for $6.41-billion in cash.
The deal will pay CDK investors $54.87 for each share held, a premium of 12 per cent to the company’s closing price on Wednesday. The enterprise value of the deal is $8.3-billion.
CDK, based in Hoffman Estates, Illinois, makes technology and software for retailers and auto manufacturers and serves more than 15,000 retail locations in North America.
Its purchase by Brookfield Business Partners, a unit of Brookfield Asset Management BAM-A-T, is expected to close in the third quarter of 2022.
CDK shares were 10.8 per cent higher in pre-market trading on Thursday.
The company in late 2020 sold its international business for $1.45-billion to investment firm Francisco Partners.
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.