Information technology giant ADP is a few weeks away from finalizing the spinoff of its Dealer Services unit into a publicly traded standalone with a newly announced name.

It will be known as CDK Global. The letters represent three of the ADP dealer unit’s historically largest businesses and most strategic brands, says Steve Anenen, president of ADP Dealer Services and incoming CEO of CDK.

The “C” stands for Cobalt Digital Marketing, a firm ADP acquired years ago because it “represented a whole new dimension of our business that we weren’t fully addressing,” Anenen says.

He adds: “We chose ‘D’ to represent Dealer Services and our 40 years of experience. This is the foundation of our business, which offers integrated management and technology solutions.” Among product offerings are dealership-management systems and customer-relationship management software.

The “K” represents Kerridge Computer, a UK-based company ADP acquired in 2005. 

“The Kerridge acquisition was a strategic decision to greatly expand our geographic footprint and demonstrates our commitment to becoming a global provider,” Anenen says.

He describes CDK’s green traffic-light logo as simple, smart and powerful.

The spinoff allows the $2-billion firm “to allocate our resources based on our priorities and industry-specific strategies,” he says.

ADP and Reynolds and Reynolds are the top two providers of dealership information technology.