CDK Global Reportedly Explores Sale To Private Equity Firms

(RTTNews) - CDK Global, Inc. (CDK), provider of information technology to auto dealers, is meeting with private equity firms to gauge their interest in buying the company, Bloomberg reported citing people familiar with matter.

The company, spun off from Automatic Data Processing Inc. last year, is working with Morgan Stanley to explore a potential sale.

CDK has a market value of about $7.8 billion as of Tuesday's close.

The company and several buyout firms have spoken with banks to determine if financing a deal that size is possible. At that amount, it may be too large for any individual firm to acquire, the report said.

CDK closed Tuesday's trading at $48.54, down $1.62 or 3.23%. However, in after hours, the stock gained $5.02 or 10.34%.