CDK Global Acquires Square Root
CDK Global has acquired Square Root, a technology company that enhances data-driven solutions for automotive retailers. This acquisition aims to strengthen CDK's Neuron intelligent data platform, which provides actionable insights from vast industry data. Square Root’s software processes 90 million data points daily through over 280 connectors, improving CDK's service offerings. The integration of Square Root is expected to accelerate product innovation and enhance customer experiences in the automotive sector. The financial terms of the acquisition remain undisclosed.
- Acquisition strengthens CDK's Neuron intelligent data platform.
- Square Root's technology improves data analytics capabilities.
- Integration expected to enhance customer experience and product offerings.
- None.
CDK Global, Inc. (Nasdaq: CDK), a leading retail automotive technology company, today completed the acquisition of Austin-based Square Root. Founded in 2006, Square Root is the creator of CoEFFICIENT®, which helps automotive original equipment manufacturer (OEM) field managers understand and act on unique data patterns and opportunities for retailers in their markets.
“The acquisition of Square Root is another important step in our efforts to build innovative solutions for dealers and OEMs that allow them to manage, analyze and grow their businesses,” said Brian Krzanich, president and chief executive officer, CDK Global. “The technology, customers, and top talent at Square Root will play an important role in helping us accelerate the expansion of our open Neuron intelligent data platform, which is designed to turn billions of pieces of industry information into actionable insights and valuable products for the automotive industry through Fortellis.”
The Neuron platform uses an analytics engine powered by artificial intelligence and machine learning to create real-time and predictive insights that empower dealers and OEMs to sell and service more vehicles by creating personalized and differentiated customer experiences.
With more than 280 connectors processing 90 million data points daily, Square Root’s software is proven at scale and will contribute to processing and delivering insights from the billions of data transactions already flowing into Neuron through CDK Global core products, such as CDK Drive, CDK Service and Elead CRM.
Neuron will also harness the power of Square Root’s integrations through the Fortellis Automotive Commerce Exchange™ to accelerate the creation of new products in the industry and to continuously enhance the user experience and value of existing products.
“Our values at Square Root are to think big, do bigger, be customer inspired, partner and thrive,” said Chris Taylor, founder and chief executive officer, Square Root. “By joining CDK Global, we get a tremendous opportunity to become part of a company that has done just that at unmatched scale for decades. We look forward to joining forces with an industry leader to help build out its next-generation automotive ecosystem.”
CDK Global acquired Square Root in a transaction that closed today for an undisclosed amount. The Square Root team will retain their office location in Austin, Texas and will integrate its operations into CDK Global over the next several weeks.
About Fortellis Automotive Commerce Exchange™ Platform
Fortellis is a technology platform that enables the automotive industry to leverage, build, innovate and integrate solutions and workflows to transform business. The Fortellis platform—with its Developer Network and Marketplace—connects software developers, OEMs and dealers so they can create new and unique experiences efficiently and seamlessly. Visit fortellis.io to learn more.
About CDK Global, Inc.
CDK Global (NASDAQ:CDK) is a leading provider of integrated data and technology solutions to the automotive, heavy truck, recreation and heavy equipment industries. Focused on enabling end-to-end, omnichannel retail commerce through open, agnostic technology, CDK Global provides solutions to dealers and original equipment manufacturers, serving nearly 15,000 retail locations in North America. CDK solutions connect people with technology by automating and integrating all parts of the dealership and buying process, including the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles. Visit cdkglobal.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210201005890/en/
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