TrueCar Raises $200 Million for Vehicle Data-Related Purchases
TrueCar Inc., a U.S. provider of automotive prices, raised $200 million to fund purchases of other data companies and expand its vehicle sales-related business, the company’s chief executive said.
TrueCar, based in Santa Monica, California, last month bought ALG, or Automotive Lease Guide, the main provider of residual values to automakers. TrueCar also said in a statement it acquired Carperks LLP, a Jacksonville, Florida-based operator of vehicle-buying programs for employees of companies including Coca-Cola Co. and Wells Fargo & Co.
“Over the next year, we’re going to buy a number of other companies in our categories,” Scott Painter, TrueCar’s founder and chief executive officer, said in a phone interview. He declined to identify companies he plans to acquire or say how much TrueCar paid for ALG or Carperks.
DealerTrak Holdings Inc., a provider of software and data services for car dealerships, is participating in the $200 million private placement, Painter said. DealerTrak sold ALG to TrueCar. It also took a 15 percent stake in privately held TrueCar as part of the agreement.
TrueCar is arranging for existing investors to exchange preferred shares for common stock and new investors to buy common shares. Participating investors include USAA Capital Corp., Capricorn Investment Group LLC and GRP Partners.
TrueCar has no immediate plans for an initial public offering of shares, Painter said.
“There’s no particular urgency on our part to do so,” said Painter, who also founded online car-buying service Carsdirect.com in 1998. “The motivation would be more about creating brand awareness.”
To contact the reporter on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net
To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net
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