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

For many years, Lamborghini has always relied on the use of large and powerful engines including the V10 and the V12. In fact, the company’s very first engine in the...
by - October 17, 2017
You can now get the Opel Crossland X that’s LPG-powered if you are not a fan of diesel. Recently, the company released their version of the Peugeot 2008 equipped with...
by - October 17, 2017
As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 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