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CDK Global Announces Comprehensive Reorganization

CDK Global Announces Comprehensive Reorganization Focused on Improving Customer Experience and Creating a More Efficient Organization

HOFFMAN ESTATES, Ill., CDK Global, Inc. announced a comprehensive streamlining of its organization that will enable it to improve customers’ experience, create significant efficiencies, and better align the Company to implement its transformation plan. The new structure, which will become effective July 1, 2016, will reorganize the Company into two main operating groups: CDK North America and CDK International. The organizational changes also include integrating product management, combining Digital Marketing and Automotive Retail North America operations into a single organization, creating a single North America Sales organization, and forming a single global R&D organization. Concurrent with the reorganization, the Company also announced a number of leadership changes.

“These fundamental changes to our global structure and leadership team will create a flatter, faster, and more efficient organization that puts the customer first and increases our ability to offer interconnected products and solutions,” said Brian MacDonald, chief executive officer at CDK Global. “When I joined CDK, I immediately recognized the tremendous capabilities we had as an organization, but we also have to acknowledge a number of limitations. CDK has essentially operated as three separate entities with an overly complex array of products, duplicate product development organizations, overlapping capabilities and inefficiencies. This hindered our ability to effectively develop and deliver solutions that take advantage of our broad capabilities.”

“As we look to a future where customers want more integrated and innovative offerings like Connected Store, we need to change our structure to meet these needs. Our new simplified structure will help the organization move faster for customers and will bring product groups together for increased collaboration across our offerings to enable better product integration. We will also be able to deploy critical capabilities globally—like R&D—to leverage scale and share best practices. In addition, a combined sales organization will simplify customer contact and provide a comprehensive offering, laying the foundation for seamless integration of digital products with the Dealer Management System,” he continued.

The savings that will be realized from the reorganization are included in the Company’s previously announced transformation plan targets of realizing a total of $250-275 million additional adjusted EBITDA dollars and achieving adjusted EBITDA margins of 35 percent in fiscal 2018. MacDonald added, “These savings cannot be achieved without the fundamental reorganization we are announcing today.”

The following changes to the organization will become effective July 1, 2016.

  • CDK North America - The Company is combining its Automotive Retail North America (ARNA) and Digital Marketing groups into a single business unit—CDK North America—which will be led by Bob Karp, currently president of ARNA.
  • CDK International - Previously known as Automotive Retail International (ARI), this business unit will now be called CDK International and will be led by Andrew Dean, currently president of ARI.
  • Strategy, Marketing and Product Management - North America Product Management will be streamlined and consolidated into the strategy, marketing and product management group led by Malcolm Thorne, chief global strategy officer.
  • North America Sales - The Company will combine its sales teams into one integrated North America sales team led by Scott Mathews, currently president of Digital Marketing.
  • Research & Development  - A single R&D group has been formed under the leadership of Rajiv Amar, recently named Chief Technology Officer.
  • Information Technology  - Dean Crutchfield has been appointed Chief Information Officer and will lead a consolidated organization responsible for internal application development, global IT infrastructure, global security and enterprise-wide data stewardship.

“I’m very pleased to announce this reorganization and the formation of a new leadership team, which is a fundamental step to achieving the goals of our transformation plan. I am confident in my new leadership team’s ability to execute on our key corporate priorities, and I am excited about the benefits this will bring to customers, associates, and shareholders,” continued MacDonald.

About CDK Global
With more than $2 billion in revenues, CDK Global (Nasdaq:CDK) is a leading global provider of integrated information technology and digital marketing solutions to the automotive retail and adjacent industries. Focused on evolving the automotive retail experience, CDK Global provides solutions to dealers in more than 100 countries around the world, serving more than 27,000 retail locations and most automotive manufacturers. CDK’s solutions automate and integrate all parts of the dealership and buying process from targeted digital advertising and marketing campaigns to the sale, financing, insuring, parts supply, repair and maintenance of vehicles. Visit www.cdkglobal.com.

Media Contact:  Kyle Donash 847.485.4335 Kyle.donash@cdk.com  
Investor Relations Contacts:

 

Views: 254

Tags: ADP Dealer, CDK Global, Customer Experience, reorganization, restructuring

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