CDK acquires Computerized Vehicle Registration

Dealership management system provider CDK Global has acquired full ownership of Computerized Vehicle Registration, a provider of certified electronic vehicle registrations.

Based in Petaluma, Calif., CVR had been backed by CDK and competitor Reynolds and Reynolds, according to CVR’s website. The company will operate as a CDK business, but CVR products will continue to integrate with Reynolds and Reynolds and other DMS providers, CDK said in its June 30 deal announcement.

“Reynolds was a minority owner of CVR. As we continue to look forward to growth and innovation, now was the right time to sell our small stake,” said Chris Walsh, president of Reynolds and Reynolds.

CDK could not be reached for comment. Neither CDK nor CVR disclosed financial terms.

CDK said the acquisition is the first since investment firm Brookfield Business Partners acquired the Hoffman Estates, Ill.-based company for $8.3 billion in July 2022. It aligns with the company’s focus on acquisitions to add more technology options for its DMS, CEO Brian MacDonald said in the deal announcement.

“We believe full ownership of CVR allows us to make further investments in support of the business and accelerate innovation for our customers,” MacDonald said.

MacDonald has been pursuing a “fit and focused” strategy as part of CDK’s innovation push that has also included layoffs and outsourcing.

Launched in 1992, CVR was designed to automate the link between states’ departments of motor vehicles and dealerships, insurance companies, financial institutions, auctions and tag industries. CVR, with support from 15 dealer associations, processes nearly 15 million vehicle transactions and more than 4 million DMV inquiries in 17 states each year, CDK said.

MacDonald said in January that CDK would continue looking at acquisitions in 2023. It did not make any acquisitions in 2022 though it closed three in 2021 and one in 2018.

Section Page News – Automotive News

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