Acquisition to help accelerate TrueCar+
product roadmap by expanding e-commerce capabilities
SANTA
MONICA, Calif., June 6, 2022
/PRNewswire/ -- TrueCar, Inc. (NASDAQ: TRUE), the easiest, most
efficient and transparent online destination for buying and selling
new and used vehicles, today announced its acquisition of
Irvine, California based Digital
Motors. The acquisition is intended to accelerate TrueCar's plan to
deliver a robust digital car buying and selling experience with its
TrueCar+ marketplace.
Digital Motors' automotive retail and financial technology
platform gives auto dealers, OEMs, lenders and other stakeholders
the ability to augment their physical presence with a digital
storefront or marketplace that offers a seamless omnichannel car
buying experience to consumers.
"With TrueCar+, we are creating an asset-light marketplace where
consumers have easy and transparent access to a national inventory
of vehicles and our dealers have efficient and turn-key access to a
national audience of consumers," said Mike
Darrow, President and CEO of TrueCar. "Our acquisition of
Digital Motors is a key step in the acceleration of that
marketplace, providing immediate access to new capabilities to
enable the development of a secure online purchasing and financing
experience. In addition, we believe the acquisition will help us to
target and attract more dealers, brands, OEMs, lenders and other
partners to the TrueCar+ ecosystem," Mr. Darrow continued.
"We also gain a team with deep experience in building automotive
e-commerce and FinTech solutions to help us realize our vision of
making TrueCar+ a unique automotive marketplace experience," he
added.
"We are excited to join TrueCar and help support the expansion
of TrueCar+, making online car buying a delightful, empowering and
efficient experience for all parties involved," said Andreas Hinrichs, CEO of Digital Motors.
"Digital Motors' configurable and scalable online retailing engine,
which can be adapted for a range of automotive use cases, will
complement the transactional focus of TrueCar+."
Presidio Technology Partners served as financial advisor to
Digital Motors.
TrueCar has financial flexibility to invest in its business with
approximately $235 million in cash
and equivalents on its balance sheet at the end of the first
quarter of 2022.
About TrueCar
TrueCar is a leading automotive digital marketplace that lets
auto buyers and sellers connect to our nationwide network of
Certified Dealers. With access to an expansive inventory provided
by our Certified Dealers, we are building the industry's most
personalized and efficient auto shopping experience as we seek
to bring more of the process online. Consumers who visit our
marketplace will find a suite of vehicle discovery tools, price
ratings and market context on new, used and Certified Pre-Owned
vehicles. When they are ready, shoppers in TrueCar's marketplace
can connect with a Certified Dealer in our network, who shares our
belief that truth, transparency and fairness are the foundation of
a great auto shopping experience. As part of our marketplace,
TrueCar powers auto-buying programs for over 250 leading brands,
including AARP, Sam's Club, Navy Federal Credit Union and American
Express.
For more information, please visit www.truecar.com, and follow
us on LinkedIn, Facebook or Twitter. TrueCar media email:
pr@truecar.com
About Digital Motors
Digital Motors Corporation is an automotive retail and financial
technology (FinTech) platform that provides complete online sales
solutions throughout the United
States and Canada. Based in
Irvine, Calif., the company's
revolutionary technology serves the growing needs of dealerships,
dealer groups, auto lenders, and vehicle manufacturers to provide a
secure end-to-end online purchasing and financing journey to their
customers. For more information or to request a demo, visit
digitalmotors.com.
Forward-Looking
Statements
Please note that this press release contains forward-looking
statements that involve risks and uncertainties, including
statements related to the company's TrueCar+ offering or any of the
company's other product offerings, the successful integration of
Digital Motors, the company's continued investments in technology
and product updates, related hiring and marketing activities,
strengthening its core service, potential future merger and
acquisition activity and positioning TrueCar for growth. In some
cases, you can identify forward-looking statements because they
contain words such as "will" or "continue" or similar words or
expressions and the negatives of those terms. These forward-looking
statements are subject to a number of risks, uncertainties and
assumptions that may prove incorrect, any of which could cause our
results to differ materially from those expressed or implied by
such forward-looking statements, and include, among others, those
risks and uncertainties described under the heading "Risk Factors"
in our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2022 filed with the
Securities and Exchange Commission. Moreover, we operate in a very
competitive and rapidly changing environment. New risks emerge from
time to time. It is not possible for our management to predict all
risks, nor can management assess the impact of all factors on our
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements we may make. All
forward-looking statements in this press release are based on
information available to our management as of the date of this
press release and except as required by law; management assumes no
obligation to update those forward-looking statements, which speak
only as of their respective dates.
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SOURCE TrueCar.com