TrueCar $TRUE ( ▲ 0.42% ) announced Wednesday that it has reached an agreement to be acquired by the online car brand's founder, Scott Painter, in a $227 million go-private deal that marks his return a decade after stepping down.
The details: Under the proposal, Fair Holdings, led by Painter, will acquire TrueCar in an all-cash transaction valued at $2.55 per share, a move that will bring together a diverse group of industry veterans and institutions, collectively known as the “Syndicate,” to lead TrueCar’s next chapter.
The bulk of the financing (~$164 million) comes from Alpha Auto, an affiliate of Miami Lakes Automall, a multi-franchise dealer operator. And an additional $60 million is expected from the broader Syndicate.
With a major focus on transparency and trust, the Syndicate will combine expertise across dealer operations, data, fintech, and mobility experiences.
Expected to close in late 2025 or early 2026, the transaction includes a standard 30-day “go-shop” period that expires November 13, 2025.
Once the deal is completed, Painter, who stepped down from TrueCar in 2015, will assume the role of the company’s chief executive officer.
What they’re saying: "Our decision to acquire TrueCar is driven by the strength of its network of 8,500 franchised and independent dealers, many of whom are among the most forward-thinking in the country," adding that the focus would include "renewed alignment with the automotive industry,” said Painter.
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State of play: The company has shown signs of stabilization after years of struggle. Revenue in 2024 reached $175.6 million, up 10.6% year-over-year, and the strongest annual increase since 2017.
However, TrueCar remains unprofitable, posting a $31 million net loss in 2024.
Before the acquisition, shares had fallen to $1.48, down more than 90% since shares peaked above $24 in 2014 (shortly after the company's IPO).
Shares rebounded to $2.40 in pre-market trading.
The acquisition values TrueCar at approximately 1.1 times estimated 2026 sales, according to JPMorgan.
Between the lines: Painter’s return to TrueCar comes at a time when the auto retail landscape looks dramatically different from the early days of online car buying.
Market uncertainty around tariffs continues to weigh on automakers and retailers.
Risks are rising in subprime lending.
And new vehicle transaction prices remain at record highs, with little sign of easing.
The elephant in the room. Consumer reviews consistently highlight a gap between TrueCar's advertised prices and what dealers actually honor, a credibility issue that undermines the platform's core value proposition for both dealers and car buyers.
Bottom line: Completion of this transaction is subject to approval by TrueCar stockholders, and gaining the appropriate regulatory approvals. But if successful, TrueCar’s return to private, founder-led ownership could mark the start of a more dealer-focused era, as the company works to reestablish itself as a trusted and transparent platform for modern auto retail.
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