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$CDK has entered into a partnership with PSA Benelux to offer the Peugeot and Citroën dealers in the region access to Autoline Drive, CDK’s new integrated Dealer Management System. Dealers in the Netherlands, Belgium and Luxembourg will be the first outside France that can opt for the new system.
$CDK said it named Amy Byrne EVP and chief human resources officer. Earlier, Amy had served Avon Products, leading its Latin America and Global Brand Marketing businesses. She has 25 years of experience in leading large global HR teams across talent, compensation, diversity, labor relations, and organizational engagement.
$CDK said that CFO, Al Nietzel, will be leaving the company to pursue other interests, effective May 31, 2017. $CDK's EVP, General Counsel and Secretary, Lee Brunz, will serve as interim CFO, while retaining his other duties, until a new CFO is appointed. The company has commenced a comprehensive search for a permanent replacement.
$CDK agreed to buy Auto/Mate Dealership Systems, a privately-held company that provides a suite of DMS (Dealer Management Systems) products and solutions to over 1000 new car dealership sites. The transaction has been approved by each company’s BoD and is expected to close later this summer.
$CDK has entered into an accelerated share repurchase agreement with Bank of America Merrill Lynch (BofAML) to buy $350MM of its common stock. $CDK will receive from BofAML on May 16, 2017, an initial delivery of approx 4.5MM shares. The final settlement is expected to occur during $CDK's fiscal quarter ending September 30, 2017.
$CDK priced $600MM of its 4.875% Senior Notes due 2027, representing a rise of $100MM from prior size. The offering is expected to close on May 15, 2017. $CDK expects to use net proceeds for general corporate purposes, which may include share repurchases, dividends, acquisitions, repayments of debt, and working capital and capital expenditures.
$CDK is offering $500MM aggregate principal amount of senior notes to qualified institutional buyers. $CDK expects to use the net proceeds from this offering for general corporate purposes, which may include share repurchases, dividends, acquisitions, repayments of debt, and working capital and capital expenditures.
$CDK said it has timely completed its plan to return $1Bil of capital to shareholders by CY16-end. During 2Q17, $CDK returned a total of $370MM through dividends and share repurchases. The $370MM was comprised of $20MM in dividends, $20MM of open market share repurchases, and $330MM in accelerated share repurchases (ASR).
BoD of $CDK appointed two new independent directors, Eileen Martinson and Stephen Schuckenbrock to the company's board, effective immediately. Currently, Eileen Martinson works as the CEO of Sparta Systems and Steve Schuckenbrock works as the CEO of CROSSMARK Inc.
$CDK said its BoD will appoint 2 independent directors identified by Elliott, and Elliott has agreed to certain "standstill" provisions. Morgan Stanley is acting as financial advisor, and Weil, Gotshal & Manges LLP is acting as legal advisor. In May, Elliott had sent a letter to $CDK BoD, asking it to streamline operations or explore a sale.
$CDK said it expects year over year in net earnings attributable to CDK to rise 43% on an as reported basis and 69% on an as adjusted basis. The company also expects diluted net earnings attributable to CDK per share to rise 48%, resulting in $0.37 per share on an as reported basis.
Digital marketing solutions company $CDK said it is partnering with TradeRev to offer live auction capability for dealers. TradeRev is a mobile vehicle appraisal and auctioning system for dealers. The new integration will enable dealers to receive instant, live bids, at the point of vehicle appraisal and auction aged inventory from any location.