Autosoft says it's already reaping the benefits.
Soon after the deal was revealed on May 24, the Autosoft team reached out to seven potential clients who were still waffling between selecting Auto/Mate or Autosoft.
After the news, those stores either went with Autosoft, or held off on making a decision, said Autosoft CEO Bryce Veon.
Veon said he thinks CDK's move to buy Auto/Mate is a defensive play. Autosoft, which has more than 2,000 DMS customers, has found a sweet spot in the market serving small to midsize dealerships.
In the last year, Veon said, Autosoft has taken around 50 customers from CDK. He says Dealertrack, owned by Cox Automotive, could see an uptick in business because of this deal as well.
Looking ahead, Veon said that third-party vendors used to accessing the Auto/Mate DMS could be in for a shock if CDK decides to charge them higher data integration fees. CDK's controversial surcharges have hounded vendors for several years and caused dealers to complain that the costs are being passed to them.
Veon said this deal could lead to CDK controlling even more dealership data.
"Between us and Auto/Mate, we've been taking a lot of business off of CDK. I'm sure they're going to see a lot of fallout," Veon told Automotive News. "A lot of Auto/Mate customers would be dealers who were either on CDK in the past or Reynolds, and they wanted to move away from those types of companies and services. It's bad for those customers. Now they're going to have to shop around again, which is good for us."
ADAM Systems, another small DMS provider, is taking the CDK-Auto/Mate news in stride.
"Consolidations are an ever-present part of our industry. As these consolidations continue to happen, we're confident that they will uncover advantages that ADAM DMS has to offer in relation to our competition," said Mike Riley, general manager.