CDK Global Inc. has acquired Square Root, an Austin, Texas, company that specializes in data insights for automotive field management.
Dealership management system giant CDK, of Hoffman Estates, Ill., said it completed the deal this week. Financial terms were not disclosed.
CDK Global last week introduced Neuron, an intelligent data platform that will link with its Fortellis open network development platform. The company says Neuron will use artificial intelligence and machine learning to generate predictive data insights that can help dealers and original equipment manufacturers customize consumer experiences.
Square Root started in 2006 and uses data to help automakers' field managers identify opportunities for retailers, according to CDK, adding that Square Root technology will help CDK produce insights based on data coming from CDK's DMS, customer relationship management system and other software.
"The acquisition of Square Root is another important step in our efforts to build innovative solutions for dealers and OEMs that allow them to manage, analyze and grow their businesses," CDK CEO Brian Krzanich said in a statement. "The technology, customers and top talent at Square Root will play an important role in helping us accelerate the expansion of our open Neuron intelligent data platform, which is designed to turn billions of pieces of industry information into actionable insights and valuable products for the automotive industry through Fortellis."
Square Root employs about 40 people, a CDK spokesman told Automotive News. The company will continue to work in Austin and will merge operations with CDK over the course of several weeks.
"Our values at Square Root are to think big, do bigger, be customer inspired, partner and thrive," Chris Taylor, Square Root's CEO and founder, said in a statement. "By joining CDK Global, we get a tremendous opportunity to become part of a company that has done just that at unmatched scale for decades. We look forward to joining forces with an industry leader to help build out its next-generation automotive ecosystem."
