CDK - CDK Global sells international business to Francisco Partners for $1.45B

CDK Global (CDK) +1.2% PM, inked a definitive agreement for selling its CDK International business segment to Francisco Partners for $1.45B (representing ~15 times CDKI's LTM adjusted EBITDA including expenses for the standalone business).Transaction expected to be completed during 3Q21 and proceeds to be used for general corporate purposes, including the pay down of debt to strengthen the balance sheet."With this transaction, we can now focus on executing the next phase of our growth journey and spotlight our attention on our North America business," president & CEO Brian Krzanich commented.The companies will use a thoughtful returns-based approach to allocating capital and will provide an update to planned use of proceeds at the release of 2Q21 earnings results.CDKI segment will be classified as discontinued operations in 2Q21; will update FY21 guidance for reflecting continuing operations.

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CDK Global sells international business to Francisco Partners for $1.45B