Online publisher TrueCar signs deal to acquire ALG

Article by Christian A., on August 26, 2011

Online publisher TrueCar Inc. has signed a deal to acquire ALG Inc., a publisher of residual values and a subsidiary of DealerTrack Holdings Inc. TrueCar, which is based in Santa Monica, Calif., publishes new and used vehicle transaction data.

The particular financial details of the tax-free reorganization were not announced but DealerTrack said last Monday that it will get a 15% stake in TrueCar and warrants to raise its ownership interest up to 19.9%. Under the deal, Lake Success, N.Y.-based DealerTrack could utilize certain ALG intellectual property and data in its products and services.

In addition, DealerTrack will get the limited right to name a director to the board of TrueCar. From the sale, DealerTrack expects to recognize a pre-tax gain of a minimum of $40 million but doesn’t believe that the transaction will have a significant impact on its 2011 earnings guidance.

Meanwhile, ALG (which has about 45 employees) will proceed with operating as a separate company. A TrueCar spokesman said that ALG won’t have any management changes.

It’s expected that the deal, which is subject to regulatory approval, will be finalized in the fourth quarter. Founded in 2005, privately held TrueCar has reported profits since 2009. Financial services giant USAA Inc. is the largest investor in TrueCar.

It is increasing capital to rapidly expand operations to team up dealers with car shoppers and give real-time and accurate pricing information to consumers. Shoppers will know what to expect to pay for a specific car or light truck. They will also know the real cost of the vehicle to a dealer.

Topics: united states

If you liked the article, share on:

Comments

Recommended

Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Barely a month before its official debut, Hyundai gave everyone a taste of what’s to come with the 2017 Hyundai i30 Wagon. Despite what little was shown, it did not...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries