CDK Global has officially announced today that they have bought EleadOne. Over the weekend there were rumors this was going to happen. But this morning CDK published a press release confirming the rumors saying, “As we looked at how best to rapidly address the needs of dealers in today's evolving marketplace, we determined that ELEAD1ONE's centerpiece CRM offering and fully integrated suite of layered applications fit well with our diversified product offerings.”
Brian MacDonald, president and CEO of CDK Global says that ELEAD1ONE is well regarded and has customer service capabilities that they are excited to have in their umbrella of skills, “ We look forward to helping dealers deliver a great customer experience with our combined products and services."
ELEAD1ONE’s CRM system is what drew CDK to acquire the company. Until now, CDK did not have a CRM platform, and each company is excited for the future. "Together with CDK, the integrated companies will leverage vast resources to continue to invest in state-of-the-art information technology, innovative software application development, and highly effective communication platforms that emphasize superior user experiences with significant measurable ROI and reporting. Together we remain dedicated to focusing on innovation, support, and delivering the highest quality technology, products and services,” said Judy Hathcock, founder and president of ELEAD1ONE.
Only small details of this business acquisition are public. How much CDK acquired ELEAD1ONE for was not made public, however more details are expected to be released once all the I’s are dotted and T’ are crossed.
***UPDATE 4:20 7/16/2018 READ THE UPDATE BELOW***
Speaking directly to DrivingSales News, a CDK spokesperson says customers have been notified via the press release, but right now there are no specific changes to current customers products because the acquisition isn’t quite official, “ A public announcement was made this morning and each company is responding to questions from its customers. Of course, the companies remain separate until the transaction receives the necessary approvals, so for current customers, it is business as usual.”
As far as the merger affecting individual dealerships, that is yet to be determined, although the CDK spokesperson says they believe this will only improve dealerships current products, ”We believe this is a strong positive for customers at both companies. Dealers will benefit from the rich and fully integrated suite of front office layered applications which will deliver greater experiences to dealers than either CDK or ELEAD1ONE can currently provide separately.”
So when will the official merger take place? Well The transaction is awaiting necessary approvals and no timing has been announced.
Until then, what do you think of this merger? Will this be a good thing, or a bad thing for the automotive industry and dealerships?