SANTA MONICA, Calif.,
Aug. 22, 2011 /PRNewswire/ --
TrueCar, Inc. the only transparent publisher of real-time new and
used vehicle transaction data in the US market, has announced that
it has signed a definitive agreement to acquire ALG, Inc. a
subsidiary of DealerTrack Holdings, Inc. (NASDAQ: TRAK) and the
industry-leading source for automotive residual values.
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The transaction is structured as a tax-free reorganization, and
in consideration for the sale of ALG, DealerTrack will receive
equity interest in TrueCar and warrants to increase its ownership
interest in the future. ALG will operate as an independent
subsidiary of TrueCar and continue to be headquartered in
Santa Barbara, Calif. In
connection with the sale, DealerTrack has entered into additional
commercial arrangements with TrueCar, including a perpetual,
royalty-free license for DealerTrack to use certain ALG
intellectual property and data in its products and services.
Scott Painter, chief executive
officer of TrueCar, Inc. commented, "We believe that, in
combination with ALG's core competency of providing
industry-leading residual values for the automotive market,
TrueCar's business will be enhanced and continue to generate
exceptional growth as more of the car buying process moves online.
In addition, we believe that our acquisition of ALG will further
develop our relationships with auto manufacturers." Painter
continued, "Lastly, we are pleased to be entering a strategic
partnership with DealerTrack which includes a two year commitment
to help us effect a smooth transition of the ALG business."
Run independently of TrueCar's operations, ALG's data and
expertise will nonetheless help accentuate TrueCar's strength --
the new and used car pricing that it provides to consumers through
TrueCar.com, Clearbook.com and its well-respected affinity auto
buying programs with USAA, American Express, AAA and many
others.
Mark F. O'Neil, chairman and chief executive officer of
DealerTrack, commented, "This transaction exemplifies our strategy
of effectively allocating capital to maximize value for DealerTrack
stockholders. We are not only selling a business which we
have grown significantly since we acquired it back in 2005, we are
making an investment in a high-growth, progressive company that is
positively impacting the way cars are retailed in the U.S. market."
"By working alongside ALG, we can achieve deeper and more
meaningful partnerships with auto manufacturers," said Bernie Brenner, Chief Strategy Officer of
TrueCar. "Through the transparency and effectiveness of TrueCar and
ALG data we will create an efficient environment where the auto
industry sells more cars and dealers can thrive in an
ever-changing, competitive marketplace."
About TrueCar, Inc.
TrueCar, Inc. is an automotive solutions provider focused on
changing how cars are sold by providing a significantly better
customer experience while helping qualified dealer partners to gain
incremental market share and reduce costs. As a transparent, visual
publisher of new car transaction data, TrueCar.com price reports
help both dealers and consumers to agree on the parameters of a
fair deal by providing an accurate, comprehensive and simple
understanding of what others actually paid for the identically
equipped new car over the last 30 days both locally and
nationally.
TrueCar, Inc. works with a national network of over 5,000
Certified Dealers that provide up-front, no-haggle, competitive
pricing to assist some of the nation's largest and most well
respected membership and service organizations to meet the auto
buying needs of their members and customers. These partnerships
include American Express, AAA, USAA and more than 60 others.
Collectively these audiences represent over 1M in-market customers
each month.
TrueCar, Inc. is headquartered in Santa Monica, CA and has offices in
San Francisco. The company was
founded in 2005 and has been profitable since 2009. With 131
percent annual growth since 2006, TrueCar has driven over 300,000
sales and is developing a suite of transaction oriented products
and services centered on transparency and radical clarity as a
result of comprehensively analyzing market data and information.
You can follow TrueCar on Twitter and become a fan of TrueCar on
Facebook.
About DealerTrack (www.dealertrack.com)
DealerTrack's intuitive and high-value software solutions and
services enhance efficiency and profitability for all major
segments of the retail automotive industry, including dealers,
lenders, OEMs, agents and aftermarket providers. DealerTrack,
whose solution set for dealers is the industry's most
comprehensive, operates the largest online credit application
network in the United States,
connecting over 17,000 dealers with more than 1,000 lenders.
DealerTrack's Dealer Management System (DMS) provides dealers
with easy-to-use tools and real-time data access to enhance their
efficiency. DealerTrack's Inventory offerings provide vehicle
inventory management and merchandising solutions to help dealers
drive higher in-store and online traffic with state-of-the-art,
real-time listings – leading to accelerated used-vehicle turn rates
and higher dealer profits. DealerTrack's Sales and F&I
solutions allow dealers to streamline the entire sales process as
they structure deals from a single integrated platform. Its
Compliance offering helps dealers meet legal and regulatory
requirements, and protect their assets. DealerTrack also
offers additional solutions for the automotive industry, including
electronic motor vehicle registration and titling applications,
paper title storage, and digital document services.
DealerTrack's family of companies also includes data and
consulting services providers ALG and Chrome Systems. For more
information visit: www.dealertrack.com.
About ALG (www.alg.com)
Based in Santa Barbara,
California, ALG is a leading provider of data and consulting
services to the automotive industry. ALG publishes the
"Automotive Lease Guide" — the standard for residual value
projections in North America, and
has been forecasting automotive residual values for over 45 years
in both the U.S. and Canadian markets. ALG is a company of
DealerTrack Holdings, Inc.
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SOURCE TrueCar, Inc.