DealerTrack to Sell ALG to TrueCar

LAKE SUCCESS, NY – DealerTrack Holidings has signed an agreement to sell its subsidiary, ALG Inc., to TrueCar Inc., according to a news release from ALG Inc. Related to the sale DealerTrack entered into additional commercial arrangements with TrueCar, including a perpetual, royalty-free license for DealerTrack to use certain ALG intellectual property and data.

DealerTrack will receive a 15-percednt equity interest in TrueCar and warrants to increase its ownership up to 19.9 percent. As part of the transaction, DealerTrack will have the limited right to appoint a director to TrueCar's Board.

The sale is expected to close in the fourth quarter, ALG’s release stated. DealerTrack stated it expects to recognize a pre-tax gain for GAAP purposes of at least $40 million on the sale, but does not expect this transaction to have an impact on 2011 non-GAAP guidance.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Another Ridiculous “Used Fleet Vehicle” Scandal

While media reports concentrate on the sting and the “outrage,” where’s the empirical evidence that fleet vehicles are less mechanically sound than vehicles sold from private owners?

Will IoT Herald a New Era in Fleet Efficiency?

With the ELD rule finally in effect, small fleet operators need to hunt for new efficiencies. In transportation logistics, Internet of Things (IoT) systems could have similar lasting impacts as telematics.

Will Cars Become Transportation Appliances?

The cars are still the stars, but this year’s L.A. Auto Show revealed an auto industry at a crossroads.

Job Finder: Access Top Talent. Fill Key Positions.

>