CDK Global's Focus on the Customer Nets Record Dealer Renewals

HOFFMAN ESTATES, Ill., July 5, 2016 /PRNewswire/ -- CDK Global has secured a record number of contract renewals in its fiscal fourth quarter, which ended June 30, 2016, with customers citing improved levels of service as the company continues to transform its operations. During the quarter, 670 CDK customers, including customers representing approximately one-in-five of CDK's automotive Dealer Management System (DMS) sites, renewed long-term contracts. 

"CDK is laser focused on our customers and listening carefully to their business needs," said Brian MacDonald, chief executive officer of CDK. "Recently expanded programs, like Service Connect, and better processes have helped us dramatically improve our service levels, and customers have taken note. CDK has a clear transformation plan, and the unprecedented level of renewals representing nearly 10 percent of all franchise auto and heavy duty truck dealership sites in North America is a tangible expression of our customers supporting our plan."

Improvements to Service Connect—CDK's online chat-based service platform—have shortened service response times by 85 percent since May of last year. Additionally, the Service Connect Community, which is a cohort of dealers working together to address common topics within their dealerships, has also grown to nearly 47,000 participants.

"CDK is dedicated to becoming more efficient and committed to meeting our customers' needs," continued MacDonald. "The success of our latest efforts to renew more customers is just one of the many accomplishments coming out of our work to evolve the automotive experience through a carefully implemented transformation plan that has just begun its second year."

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This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, including statements concerning the Company's business transformation plan, other plans, objectives, forecasts, goals, beliefs, business strategies, future events, business conditions, results of operations, financial position and business outlook and business trends, and other information, may be forward-looking statements. Words such as "might," "will," "may," "could," "should," "estimates," "expects," "continues," "contemplates," "anticipates," "projects," "plans," "potential," "predicts," "intends," "believes," "forecasts," "future," "assumes," and variations of such words or similar expressions are intended to identify forward-looking statements. These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed, or implied by, these forward-looking statements.

Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include: the Company's success in obtaining, retaining and selling additional services to customers; the pricing of products and services; overall market and economic conditions, including interest rate and foreign currency trends, and technology trends; auto sales and advertising and related industry changes; competitive conditions; changes in regulation; changes in technology; security breaches, interruptions, failures and other errors involving the Company's systems; availability of skilled technical employees/labor/personnel; the impact of new acquisitions and divestitures; employment and wage levels; availability of capital for the payment of debt service obligations or dividends or the repurchase of shares; the Company's ability to timely and effectively implement its transformation plan, which is intended to increase operating efficiency and improve the Company's global cost structure, while limiting or mitigating business disruption; and the ability of the Company's significant stockholders and their affiliates to significantly influence the Company's decisions.

There may be other factors that may cause the Company's actual results to differ materially from the forward-looking statements. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. The Company gives no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on its results of operations and financial condition. You should carefully read the factors described in the Company's reports filed with the Securities and Exchange Commission ("SEC"), including those discussed under "Part I, Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2015 and its most recent Quarterly Report on Form 10-Q for a description of certain risks that could, among other things, cause the Company's actual results to differ from any forward-looking statements contained herein. These filings can be found on the Company's website at www.cdkglobal.com and the SEC's website at www.sec.gov. 

All forward-looking statements speak only as of the date of this press release even if subsequently made available by the Company on its website or otherwise. The Company disclaims any obligation to update or revise any forward-looking statements that may be made to reflect new information or future events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.

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 evolving the automotive retail experience, CDK Global provides solutions to dealers in more than 100 countries around the world, serving more than 27,000 retail locations and most automotive manufacturers. CDK's 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.

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SOURCE CDK Global

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