May 3, 2020 — In an SEC filing late last week, CDK Global revealed the terms of the sale of its digital marketing division to Ansira Partners.
As suspected, the deal was not for much money. CDK is getting a $24 million note receivable from Ansira. There was a surprise, however. CDK is getting a 15% equity stake in Ansira as part of the transaction.
Ansira has rebranded CDK’s digital division as Sincro.
It’s an interesting move and makes sense for both companies. CDK maintains a presence in the digital marketing space while moving a business that had become a distraction off its books.
Ansira, which has developed the reputation of being one of the industry digital advertising cops for various automotive brands, monitoring dealers for digital advertising compliance, positions itself as providing integrated marketing services across different channels and tiers.
But Ansira needed to expand its toolset for dealers. The acquisition of CDK’s digital products (and subsequent rebranding the division as Sincro) will help it provide a full suite of digital products for dealers while enhancing its offerings on the local marketing level.
Sincro is branding itself as “local marketing, synchronized.”
CDK announced in July 2019 it was going to sell the digital marketing business and began listing the division as “discontinued operations in its financial reports.
In late April, Ansira completed the purchase of CDK’s Digital Marketing business, after announcing the transaction in February.
CDK’s Jen Cole is staying with the new company as president. More than 175 representatives, including employees in India, are also staying with Sincro.
It’s the fifth acquisition for Ansira since 2016 when private equity giant Advent International took a majority equity position for an undisclosed sum.