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US: CDK to abandon Auto/Mate buy due to FTC

By  |  March 20, 2018

The Federal Trade Commission (FTC) said Tuesday, March 20, that CDK Global Inc. had abandoned its planned purchase of fellow automotive dealer specialized software vendor Auto/Mate after the agency filed an administrative complaint alleging their tie-up would “reduce competition in an already concentrated market.”

The FTC had notified the parties of its opposition to the proposed acquisition, leading to the decision to terminate. Both companies expressed disappointment at not being able to complete the transaction in a timely fashion, citing the desire, in the face of regulatory resistance, to redirect their resources and attention to their businesses. The companies intend to focus on delivering value to their respective customers in a competitive marketplace.

Full Content: Street Insider

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