Portico Capital Advises Salty on its Sale to CDK Global

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Portico Capital Advisors is pleased to announce that it served as the exclusive financial advisor to Salty Dot, Inc. (“Salty” or “Company”), the leading mobile-first embedded insurance platform provider that helps consumers secure insurance seamlessly without leaving the car-buying experience, on its sale to CDK Global (“CDK”). The combination will support Salty in its next phase of growth, as the Company gains instant access to ~15,000 retail locations in automotive and related industries, which will accelerate platform adoption and fundamentally change the experience consumers have during and after a vehicle purchase.

James Hall, Founder and CEO of Salty said “We’re thrilled to be joining the CDK team and could not have selected a better partner than Portico to guide us through the transaction process. Portico’s deep sector expertise in both automotive and F&I technology, access to key decision makers, and proven execution capabilities were instrumental in achieving a successful outcome. They supported us throughout every step of the process and worked tirelessly to optimize the result.”

Eric Denlinger, Partner at Portico Capital Advisors said, “It was a true pleasure working with James Hall, Andy Sutton and the entire Salty team on this pivotal transaction in the auto dealer technology sector.  The opportunity ahead for the combined company is massive, driven by a secular shift towards mobile-first, simple to use technology platforms which are disrupting traditional industries, in this case P&C insurance.”

The transaction represents Portico’s 28th transaction in automotive data, analytics, and SaaS and the 15th transaction in the sector during the last twelve months, reinforcing its position as the leading adviser in automotive data and technology.

Below are more details from CDK Global’s press release:

CDK Global to Acquire Insurance Technology Platform Salty Dot, Inc.
HOFFMAN ESTATES, Ill. — 23rd September 2022 — CDK Global, Inc. (Nasdaq: CDK), a leading automotive retail technology company, has entered into a definitive agreement to acquire Salty Dot, Inc. (“Salty”), a convenient, mobile-first solution that helps consumers secure the insurance they need for their vehicle seamlessly without leaving the car-buying experience.

Salty’s technology will further expand CDK’s suite of digital offerings and grow its total addressable market beyond the digitization of traditional dealer workflows. This new capability will also enable dealers to create a new, recurring revenue stream from within the $311 billion U.S. automobile insurance market1 and develop deeper consumer relationships beyond the vehicle sale.

“In a time of significant retail disruption, CDK is focused on helping dealers and manufacturers meet the evolving demand for simple and convenient retail experiences,” said Brian Krzanich, President and Chief Executive Officer, CDK Global. “Now that we’ve completely digitized the sales and service processes within the dealership model, we are taking the next step of bringing dealers new capabilities—like Salty’s Embedded Insurance®—to help consumers manage the many decisions that come with buying and owning a car. With Salty, we are strategically rethinking the future of auto retail and helping put dealers in command of the entire consumer experience.”

Salty’s insurance platform uses cutting-edge technology to build a customized, competitive and bindable insurance quote through its top-rated carrier network. Through a seamless integration with the dealer management system (DMS), the car buyer receives a text message during their purchase process with a link to a quick and easy form. Salty’s platform—driven by artificial intelligence—then selects the carrier and personalized policy based on their answers and presents it to them digitally within minutes.

“I am proud of the work the Salty team has done in creating a digital experience that gives consumers a seamless way to buy insurance when it’s most relevant to them—during the car-buying process,” said James Hall, Founder and Chief Executive Officer, Salty. “By joining an industry leader like CDK, Salty gains instant access to nearly 15,000 retail locations in automotive and related industries, which will accelerate the adoption of our platform and fundamentally change the experience consumers have during and after a vehicle purchase.”

Salty is licensed in all 50 states and is available to all dealers nationwide—not just those that use CDK’s DMS or customer relationship management (CRM) system.

Salty is an early stage product with rapid long-term growth potential but will not impact CDK’s current fiscal 2022 guidance.

About Salty 
Salty Dot, Inc. is the Embedded Insurance® technology company. Salty removes existing consumer impediments to buying the right policy and having the proper coverage. The company’s platform is a proprietary Software-as-a-Service (SaaS) solution that enables carriers and distribution partners to offer a customized policy to insure a product or service in real-time during the purchase process. Salty uses artificial intelligence to analyze unique data sources about the buyer and the purchase. It then sorts through multiple carriers to seamlessly offer the right insurance. The company is licensed to operate in all 50 states through Salty Dot Insurance Agency, LLC and its affiliates.  

About CDK Global
CDK Global (NASDAQ: CDK) is a leading provider of integrated data and technology solutions to the automotive, heavy truck, recreation, and heavy equipment industries. Focused on enabling end-to-end, omnichannel retail commerce through open, agnostic technology, CDK Global provides solutions to dealers and original equipment manufacturers, serving nearly 15,000 retail locations in North America. CDK solutions connect people with technology by automating and integrating all parts of the dealership and buying process, including the acquisition, sale, financing, insuring, parts supply, repair, and maintenance of vehicles. Visit cdkglobal.com.

About Portico Capital Advisors
Portico Capital Advisors 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 providing verticalized software, data, and analytics. The firm, founded in 2000, has offices in New York, Greenwich, and London. For more information, please visit www.porticocap.com.

has signed a definitive agreement to be acquired by
Portico contact(s)

S. Searcy Dryden
Managing Partner
searcy@porticocap.com
203.661.7719

Eric Denlinger
Partner
eric@porticocap.com
203.661.7523