TrueCar, Inc., the most efficient and transparent online destination to find a car, announced today that it closed the previously announced sale of its ALG subsidiary to J.D. Power.
The total consideration of $135 million includes an upfront cash payment of $112.5 million received at closing, and total deferred payments of up to $22.5 million based on certain financial results. This transaction enriches TrueCar’s cash balance, which as of today exceeds $270 million. The company has no outstanding debt on its balance sheet.
TrueCar will use proceeds from the ALG divestiture to support its share repurchase program of up to $75 million, which is already underway, and to maintain strategic flexibility.
“We are very pleased to reach today’s milestone, which reinforces our commitment to creating shareholder value. With over $270 million of cash on the balance sheet and no outstanding debt, we are in a strong financial position to accelerate toward our vision of building the most flexible and convenient digital car buying marketplace,” said Mike Darrow, President & CEO of TrueCar.
Goldman Sachs & Co. LLC. served as exclusive financial advisor to TrueCar in connection with the transaction and Cooley LLP served as legal counsel.
SOURCE: TrueCar
