CDK Global Acquires Roadster for $360 Million

Roadster, a digital platform headquartered in Palo Alto, California, offering online sales solutions for automotive dealers, has been acquired by CDK Global Inc., a leading retail automotive technology firm. The acquisition, valued at $360 million, was detailed in a recent filing with the Securities and Exchange Commission.

Transaction Details and Roadster's Evolution

The deal was executed as an all-cash transaction, resulting in Roadster becoming a fully-owned subsidiary of CDK Global. Founded in 2013, Roadster’s operational approach has undergone significant changes over time.

Initially, the platform functioned as a direct sales channel, listing dealer inventories and managing the complete customer purchase journey. However, Roadster has since shifted its focus.

Currently, Roadster primarily empowers dealerships directly by supplying its suite of digital retail tools through its “Express” product line.

Adapting to the Modern Automotive Retail Landscape

These digital solutions are designed to assist dealerships in adapting to the evolving demands of today’s car buyers. Customers are increasingly comfortable completing significant purchases online, a trend that has been dramatically accelerated in the past year.

“A growing number of consumers are demonstrating a willingness to make substantial purchases online, and this shift was notably expedited by the recent pandemic,” stated Brian Krzanich, President and CEO of CDK Global.

“The automotive sector needs the integration of appropriate technology, data, and infrastructure to effectively bridge the gap between online and in-store customer experiences to satisfy these expectations.”

Synergies with CDK Global’s Existing Portfolio

CDK Global is well-established for streamlining the vehicle sales process through digital offerings such as Connected Store – a platform for digital quotes, loan applications, and payment processing – and Elead CRM, a lead generation software solution.

The integration of Roadster’s capabilities will enable CDK to connect more effectively with dealer back-end systems, creating a more unified and efficient sales process.

Roadster’s Vision for Integrated Automotive Retail

“The automotive retail environment is inherently complex,” explained Andy Moss, Founder and CEO of Roadster. “A truly seamless, end-to-end buying experience requires complete integration with the back-end systems that manage dealership sales, finance, and operations, irrespective of the provider.”

“This integration is the key to delivering a frictionless experience for both dealers and consumers.”