Boston, MA 10/10/2014 (wallstreetpr) – CDK Global Inc (NASDAQ:CDK), which was earlier a part of Automatic Data Processing (NASDAQ:ADP), has successfully been spun out from the parent company on September 30, 2014. The company, an IT and digital marketing products provider now is all on its own with over $2 billion revenue and bright future vision. A Wall Street Journal report gave insights on the spin off and future plans as told by the company’s CFO Al Nietzel.
More Opportunities
Nietzel highlighted that the spin off from parent company has given opportunity to the existing key talent of the company to get into a comprehensive role in the new category. He elaborated that since all the major financial tasks earlier were limited to the parent company, employees with excellent skills found it difficult to broaden their experience then. Speaking about the time frame within which the spinoff took place, Nietzel said that in terms of sourcing a finance team took at a decent pace. CDK Global Inc (NASDAQ:CDK) was able to execute the final separation within a six months time as they had started preparing for the task well in advance.
Under the current economic scenario, consumers are not much into buying cars, which calls for reason for CDK Global Inc (NASDAQ:CDK)’s increased technology investment at dealership level. Nietzel said that the company is focussing to make online experience more seamless and consistent. He added that they are here to serve people, who wish to have a different car buying experience.
Freedom To Decide
Further, Nietzel said that CDK Global Inc (NASDAQ:CDK) being a standalone company is equipped with ability to communicate about its offerings differently than they did under ADP. The company is positioned to take decisions with respect to its investments and acquisitions in an aggressive and fast paced way.Moreover, it is free to take independent decisions about capital allocation, which earlier was difficult. Finally, Nietsel considers that functioning of a standalone firm is more smooth and sensible than being attached to a parent company. Therefore, he expects the trend to continue in the future.
