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

Trump and Regulations: An Alt-Fuel View

With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

Enabling a telematics connection at the factory — and not through an aftermarket hardware installation — is a game changer for fleets.

Four Thoughts From the 2016 Conference Calls

Sifting through the notes of Avis Budget Group’s and Hertz Global Holdings’ recent fourth quarter conference calls give us some trend lines to watch out for in 2017. (Of course, this gives us an incomplete snapshot, as Enterprise Holdings is privately held.)

Job Finder: Access Top Talent. Fill Key Positions.

>