Portico Capital Advises Francisco Partners on its Acquisition of CDK International (nka: Keyloop)

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Portico Capital announced today that it served as the exclusive financial adviser to Francisco Partners on its  acquisition of CDK International (nka: Keyloop) for $1.45 billion, representing one of the most significant transactions in the Automotive Software sector this year.

Giles Roshier, Partner at Portico Capital said, “We are delighted to advise Francisco Partners on this landmark deal in the automotive software industry. As the leading international DMS platform, the business is set to be at the forefront of the evolution of the automotive retail software sector.”

“Keyloop is poised to expand its leadership position as the technology platform driving innovation in automotive software. Francisco Partners, with its strong heritage in scaling platform technology companies, represents the ideal partner to support the company on this journey,” added Eric Denlinger, Partner at Portico Capital.    

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

Francisco Partners Completes Acquisition of International Business of CDK Global

LONDON & SAN FRANCISCO | Francisco Partners (FP), a leading global investment firm that specializes in partnering with technology businesses, today announced the completion of the acquisition of CDK Global International, a former division of CDK Global (NASDAQ: CDK) and a leading provider of automotive retail software in EMEA and Asia. CDK Global International has now been established as an independent business named Keyloop.

Petri Oksanen, Partner at Francisco Partners and Chairman of Keyloop, comments:

“The decision to invest in Keyloop, with its track record of technological innovation and impressive global footprint, was a natural one for us and we look forward to developing the business in the months and years ahead and to accelerating the transformation of this exciting industry. We are committed to ensuring Keyloop is able to move swiftly and decisively to deliver on its mission of transforming the car buying and ownership experience in partnership with both dealers and OEMs.”

Tom Kilroy joins Keyloop immediately as the new CEO. He joins from FP, where he was an Operating Partner. Prior to this, he held the position of Chief Operating Officer of Finastra, a fintech company with over 10,000 employees and revenues of ~$2 billion. He brings deep experience of best practices from global technology businesses providing mission-critical software.

Tom adds:

“We have all seen how technology players have set new standards for exceptional digital retail experiences. Now automotive consumers are starting to demand the same. As dealers and OEMs attract and serve the next generation of car buyers, digital transformation must be top of their agenda. We strongly believe that Keyloop is uniquely positioned to help them achieve this.”

Matt Spetzler, Partner at Francisco Partners and Member of the Board of Keyloop, comments:

“We believe Keyloop has a strong foundation and an exciting strategic vision to be at the centre of a vibrant and inclusive automotive technology ecosystem. We expect Keyloop to announce its first steps in the market immediately and to accelerate the development of its partner programme, work more closely with OEMs going forward, and connect technology solutions from around the world to help create a new future for automotive retailing for dealers.”

Francisco Partners was advised by Portico Capital as its financial advisor, RL Frey Inc., Paul Hastings LLP and Kirkland & Ellis as legal counsel, and Alvarez & Marsal’s Transaction Advisory Group.

About Francisco Partners
Francisco Partners is a leading global investment firm that specializes in partnering with technology and technology-enabled businesses. Since its launch over 20 years ago, Francisco Partners has raised over $24 billion in committed capital and invested in more than 300 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where its deep sectoral knowledge and operational expertise can help companies realize their full potential. For more information on Francisco Partners, please visit www.franciscopartners.com.

About CDK Global
With $2 billion in revenues, CDK Global (NASDAQ:CDK) is a leading global provider of integrated information technology 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 30,000 retail locations and most automotive manufacturers. CDK solutions automate and integrate all parts of the dealership and buying process, including the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles. Visit www.cdkglobal.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.porticocap.com.

has acquired
Portico contact(s)
S. Searcy Dryden
Managing Partner
Giles Roshier
+44 (0) 203 011 0470
Eric Denlinger