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.
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.
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.
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.