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Portico Capital Advises ELEAD1ONE on its Announced Sale to CDK Global

July 16, 2018
Greenwich, CT

Portico Capital announced today that it served as the exclusive financial adviser to ELEAD1ONE on its announced sale to CDK Global, representing one of the most significant transactions in the Automotive Software sector this year.

Eric Denlinger, Managing Director at Portico Capital said, “It has been a pleasure working with the founders of ELEAD1ONE on this transaction. The Company’s fully integrated CRM software platform is highly complementary to CDK’s solutions driving end-to-end automotive commerce.”

“We believe that, upon close, ELEAD1ONE’s prominent automotive software and technology expertise will facilitate accelerating growth, continued innovation, and meaningful value creation for the combined company and its customers,” added Searcy Dryden, General Partner at Portico Capital.      

Below are more details from the Company's press release:

ELEAD1ONE’s automotive retail front office applications and integrated customer service platform to complement the diversified product and service portfolio of CDK Global.

CDK Global, Inc. (NASDAQ:CDK), a leading enabler of automotive commerce, today announced that it has entered into a definitive agreement to acquire ELEAD1ONE. The transaction has been unanimously approved by the CDK Board of Directors.

ELEAD1ONE’s automotive customer relationship management (CRM) software and call center solutions enable seamless interaction between sales, service and marketing operations to provide dealers with a best-in-class customer acquisition and retention platform.  As a trusted software and business consultant to approximately 4,000 auto dealerships across North America, ELEAD1ONE stands ahead of the curve to service today’s changing and competitive automotive retail environment.

“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,” said Brian MacDonald, president and CEO, CDK Global.  “In addition, ELEAD1ONE’s well-regarded customer service capabilities will complement our focus on delivering an outstanding experience to its dealer customers.  We look forward to helping dealers deliver a great customer experience with our combined products and services.”

“ELEAD1ONE dealers demand superior performance from the most advanced and integrated CRM software solution in the automotive industry,” said Hugh Hathcock, founder and CEO, ELEAD1ONE.  "Recognized as a clear industry leader, ELEAD1ONE has consistently developed and delivered powerful cutting-edge dealer solutions, combining CRM with our successful ELEAD1ONE Contact Center, and Fixed Ops platform." Judy Hathcock, founder and president of ELEAD1ONE added, “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."

The proposed transaction is subject to customary closing conditions. The value of the transaction was not disclosed and is expected to be modestly dilutive to adjusted earnings per share in Fiscal 2019 and accretive to adjusted earnings per share in Fiscal 2020. More details will be provided after closing. Portico Capital Securities LLC is acting as exclusive financial advisor and Cadwalader, Wickersham & Taft LLP is serving as legal counsel to ELEAD1ONE in the transaction.  Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to CDK in the transaction.

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 enabling end-to-end automotive commerce, CDK Global provides solutions to dealers in more than 100 countries around the world, serving approximately 28,000 retail locations and most automotive manufacturers. CDK 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 
 
About ELEAD1ONE

ELEAD1ONE is the leading provider of fully integrated CRM software solutions to automotive dealers, serving approximately 4,000 dealerships across North America.  The ELEAD1ONE platform delivers a comprehensively featured customer experience through its solution suite by combining Sales, Marketing, Contact Center, and Service1One capabilities into a single dashboard.  Serving the automotive industry since inception, ELEAD1ONE has earned a reputation for delivering superior software that is easy to use and effective. The ELEAD1ONE suite incorporates the full breadth of layered applications (such as Desking, Mobile Retail, Inventory Management, ILM, Equity Data Mining, Omnichannel Marketing, AI, Online Scheduling, Lane, and Multi-point Inspection) required to maximize ROI at the dealership. With offices in Georgia and Florida, ELEAD1ONE has over 1,500 employees and serves leading dealers, including 6 of the top 10 dealer groups, nationally. Visit www.elead-crm.com

About Portico Capital Securities LLC

Portico Capital provides independent strategic and financial advisory services in the areas of mergers & acquisitions (M&A), recapitalizations and capital raisings exclusively to private and public companies in the global information and business services/software sector. The firm, founded in 2000, has offices in Greenwich, Connecticut; New York, New York; and London, England. Visit www.porticocapital.com

PORTICO CONTACTS
S. Searcy Dryden, General Partner
searcy@porticocapital.com
203.661.7719

Eric Denlinger, Managing Director
eric@porticocapital.com
203.661.7523