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Portico Capital Advises Square Root on its Sale to CDK Global

February 1, 2021
New York, NY

Portico Capital announced today that it served as the exclusive financial adviser to Square Root on its sale to CDK Global.

Eric Denlinger, Partner at Portico Capital said, “Square Root’s proprietary technology and talented team can uniquely accelerate CDK’s strategic initiatives, such as expanding the Neuron intelligent data platform, strengthening its suite of field management software tools, and more. It has been a pleasure working with Chris Taylor and the Square Root team. We are excited to watch the company’s continued growth as part of CDK!”  

“The Portico team did a fantastic job finding the best fit for Square Root and was incredibly supportive at each step of the transaction process. Portico’s access to key decision makers, sector expertise, and incredible work ethic proved invaluable throughout the sale process. We couldn’t be happier with the selection of Portico to lead this sale process,” said Chris Taylor, Founder & CEO of Square Root.

The transaction represents Portico's 22nd transaction in automotive data, analytics, and SaaS and reinforces its position as the leading adviser in the sector. 

 

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

 

CDK Global Acquires Square Root

SAAS-BASED PROVIDER TRANSFORMS DISPARATE DATA INTO ACTIONABLE INSIGHTS FOR AUTOMOTIVE OEMS

HOFFMAN ESTATES, Ill. | CDK Global, Inc. (Nasdaq: CDK), a leading retail automotive technology company, today completed the acquisition of Austin-based Square Root. Founded in 2006, Square Root is the creator of CoEFFICIENT®, which helps automotive original equipment manufacturer (OEM) field managers understand and act on unique data patterns and opportunities for retailers in their markets.

“The acquisition of Square Root is another important step in our efforts to build innovative solutions for dealers and OEMs that allow them to manage, analyze and grow their businesses,” said Brian Krzanich, president and chief executive officer, CDK Global. “The technology, customers and top talent at Square Root will play an important role in helping us accelerate the expansion of our open Neuron intelligent data platform, which is designed to turn billions of pieces of industry information into actionable insights and valuable products for the automotive industry through Fortellis.”

The Neuron platform uses an analytics engine powered by artificial intelligence and machine learning to create real-time and predictive insights that empower dealers and OEMs to sell and service more vehicles by creating personalized and differentiated customer experiences.

With more than 280 connectors processing 90 million data points daily, Square Root’s software is proven at scale and will contribute to processing and delivering insights from the billions of data transactions already flowing into Neuron through CDK Global core products, such as CDK Drive, CDK Service, and Elead CRM.

Neuron will also harness the power of Square Root’s integrations through the Fortellis Automotive Commerce Exchange™ to accelerate the creation of new products in the industry and to continuously enhance the user experience and value of existing products.

“Our values at Square Root are to think big, do bigger, be customer inspired, partner and thrive,” said Chris Taylor, founder and chief executive officer, Square Root. “By joining CDK Global, we get a tremendous opportunity to become part of a company that has done just that at unmatched scale for decades. We look forward to joining forces with an industry leader to help build out its next-generation automotive ecosystem.”

CDK Global acquired Square Root in a transaction that closed today for an undisclosed amount. The Square Root team will retain their office location in Austin, Texas and will integrate its operations into CDK Global over the next several weeks.

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 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.porticocapital.com

PORTICO CONTACTS
S. Searcy Dryden, Managing Partner
searcy@porticocapital.com
203.661.7719
 
Eric Denlinger, Partner
eric@porticocapital.com
203.661.7523