HOFFMAN ESTATES -- CDK Global Inc., a maker of auto dealership management software, has entered into a definitive agreement to acquire Salty Dot Inc., a mobile-first solution that helps people buy insurance they need for their vehicle seamlessly within the car-buying experience.
Financial terms of the transaction were not disclosed.
Salty's technology will further expand CDK's suite of digital offerings and grow its market beyond the digitization of traditional dealer workflows, the company said. This new capability will also enable dealers to create a new, recurring revenue stream from within the $311 billion U.S. automobile insurance market, while developing deeper consumer relationships beyond the vehicle sale.
"In a time of significant retail disruption, CDK is focused on helping dealers and manufacturers meet the evolving demand for simple and convenient retail experiences," said Brian Krzanich, president and chief executive officer, CDK Global.
Salty Dot, based in Salt Lake City, Utah, is an early stage product with rapid long-term growth potential, CDK said. It is licensed in all 50 states and is available to all dealers nationwide -- not just those that use CDK's customer relationship management system.