TrueCar Closes Sale of ALG Subsidiary to J.D. Power
TrueCar, Inc. (NASDAQ: TRUE) has finalized the sale of its ALG subsidiary to J.D.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
TrueCar, Inc. (NASDAQ: TRUE) has finalized the sale of its ALG subsidiary to J.D. Power for a total consideration of $135 million. This includes an upfront cash payment of $112.5 million and deferred payments up to $22.5 million based on financial results. Following this transaction, TrueCar's cash balance exceeds $270 million, with no outstanding debt. The proceeds will support a $75 million share repurchase program, reinforcing TrueCar's commitment to creating shareholder value.
Positive
- Sale of ALG subsidiary for $135 million enhances cash position.
- Cash balance exceeds $270 million with no outstanding debt.
- Proceeds to support a $75 million share repurchase program.
Negative
- None.
Details
News Market Reaction – TRUE
The recorded move for TRUE in the trading session of this news was -1.45%.
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AI-generated analysis. How Rhea-AI works. Not financial advice.
SANTA MONICA, Calif., Nov. 30, 2020 (GLOBE NEWSWIRE) -- TrueCar, Inc. (NASDAQ: TRUE), 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
TrueCar will use proceeds from the ALG divestiture to support its share repurchase program of up to
“We are very pleased to reach today’s milestone, which reinforces our commitment to creating shareholder value. With over
Goldman Sachs & Co. LLC. served as exclusive financial advisor to TrueCar in connection with the transaction and Cooley LLP served as legal counsel.
About TrueCar
TrueCar is a leading automotive digital marketplace that enables car buyers to connect to our nationwide network of Certified Dealers. We are building the industry's most personalized and efficient car buying experience as we seek to bring more of the purchasing process online. Consumers who visit our marketplace will find a suite of vehicle discovery tools, price ratings and market context on new and used cars – all with a clear view of what's a great deal. When they are ready, TrueCar will enable them to connect with a local Certified Dealer who shares in our belief that truth, transparency and fairness are the foundation of a great car buying experience. As part of our marketplace, TrueCar powers car-buying programs for over 250 leading brands, including AARP, Sam’s Club, and American Express. Nearly half of all new-car buyers engage with TrueCar powered sites, where they buy smarter and drive happier. TrueCar is headquartered in Santa Monica, California, with offices in Austin, Texas and Boston, Massachusetts.
For more information, please visit www.truecar.com, and follow us on Facebook or Twitter. TrueCar media line: +1-844-469-8442 (US toll-free) Email: pr@truecar.com
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