Update: Automatic Data Processing Spin-Off CDK Global Already Has An Activist Investor Taking A Large Position In The Company
- CDK is a dealer services business that provides marketing solutions to over 26,000 auto retailers, distributors and manufacturers.
- An activist hedge fund announced in an SEC filing that they had acquired an economic interest in CDK equivalent to a 9.8 percent stake.
- The hedge fund’s disclosed position is not hostile and currently the activist hedge fund is seeking meetings with CDK management.
- We did not anticipate that CDK would attract such activist investor interest so soon after being spun off.