M&A · Tech · Services-Business Services, NEC
Brookfield Business Partners L.P. to acquire CDK Global, Inc.
Announced Apr 7, 2022 · Closed Jul 6, 2022
Deal value$8.30BEV $8.30B
Premium30.0%To unaffected price
EV / Adj. EBITDA13.6x4.8x EV / Revenue
ConsiderationAll cash$54.87 per share
Transaction
- Acquirer
- Brookfield Business Partners L.P. (BBUC)
- Target
- CDK Global, Inc. (CDK)
- Buyer type
- Private equity
- Offer price per share
- $54.87
- Enterprise value
- $8.30B
- Status
- Closed Jul 6, 2022
Deal protections
- Break fee (target pays)
- $182M · 2.2%
- Reverse fee (buyer pays)
- $594M · 7.2%
- Go-shop
- No-shop
- Financing
- Committed · Credit Suisse, Goldman Sachs, BMO Capital Markets, Barclays, Deutsche Bank, RBC Capital Markets +2
Advisors
- To the acquirer
- Not disclosed
- To the target
- Morgan Stanley
- Morgan Stanley fee
- $56.8M
Sector context · Tech
- Comparable deals
- 62 in the prior 24 months
- Premium
- 30.0% vs. 31.0% sector median
- EV / Adj. EBITDA
- 13.6x vs. 17.4x sector median
- Break fee
- 2.2% vs. 3.0% sector median
Timeline
- AnnouncedApr 7, 2022
- Tender offerApr 22, 2022
- ClosedJul 6, 2022
Valuation · fairness opinions
Leveraged buyout$45.00$58.25
Leveraged buyout$38.75$49.25
Discounted cash flow$57.00$74.25
Discounted cash flow$46.25$61.00
Future share price$49.00$61.00
Offer $54.87
Implied value per CDK Global, Inc. share by analysis, from Morgan Stanley.