TrueCar is going private. This means you will no longer be able to buy its stock on the market. A big buyout deal now values the online car shopping service at $227 million. This significant news broke today. The company’s original founder, Chip Perry, leads this exciting purchase. He is partnering with Raine Partners, a well-known private equity firm. This move takes TrueCar off the public stock exchange after ten years.
The deal offers TrueCar shareholders $5.40 in cash for each share they own. This price gives investors a good return. It represents a 15% premium over TrueCar’s closing stock price on August 9, 2024. It is also a substantial 30% premium compared to its average price over the last 30 days. These premiums show the strong value placed on the company.
TrueCar helps millions of people shop for cars. It connects you with local dealers. You can compare prices easily. It also gives you valuable research tools. This makes buying a car simpler for you. The current CEO, Mike Darrow, will continue in his role. TrueCar plans to operate as an independent business. This structure keeps its focus clear.
TrueCar’s Buyout: Key Figures and Next Steps
The TrueCar Board of Directors has already given its full approval for this agreement. A special committee of independent directors also reviewed and approved the deal. This shows strong support from within the company’s leadership. However, there’s still one big hurdle left. TrueCar shareholders must vote to approve the plan. Their decision is crucial for the deal to move forward.
This transaction is expected to close in the fourth quarter of 2024. This means the change should happen between October and December of this year. If you hold TrueCar stock (NASDAQ: TRUE), you will receive cash for your shares. This marks a major shift for the company and its investors. TrueCar went public in 2014. Now, it returns to private hands under its founder. This full circle move is quite notable.
Here are some quick facts about the buyout:
- Total Value: $227 million
- Price Per Share: $5.40 in cash
- Premium Over Aug 9 Price: 15%
- Premium Over 30-Day Average: 30%
- Expected Close: Q4 2024
This deal will let TrueCar make long-term plans.
It will not face the constant pressure of public market reports. This flexibility is key for growth. You can learn more about TrueCar and its business model.
Why Founder Chip Perry Is Taking TrueCar Private Again
Chip Perry founded TrueCar with a clear vision. He believes a private structure offers the best path forward. It allows greater flexibility for strategic decisions. This helps the company focus on long-term growth. It can also improve the overall customer experience. This decision removes the daily demands and scrutiny of public markets.
Going private means TrueCar can invest more freely. They can focus on innovation without immediate Wall Street expectations. This allows for bold new ideas. It also helps them serve both car buyers and dealers better. This strategy is about building for the future. It’s not just about short-term stock performance.
Private equity firms, like Raine Partners, specialize in these types of investments. They often buy companies with strong potential. Their goal is to help these businesses grow significantly. They provide capital and expertise. Then, they aim to create more value over several years. This is a common practice in the financial world. Want to know more? Understand private equity investments and their purpose.
TrueCar’s mission is simple: make car buying easy. They connect millions of buyers with certified dealers. They provide transparent pricing and helpful research tools. This buyout could lead to even better services for you. The company aims to simplify your next vehicle purchase. They promise continued improvements.
This big change shows TrueCar adapting. The online automotive market is always evolving. What will this mean for car shoppers in the coming months? We will bring you updates as TrueCar completes this important transition. Stay tuned for how this impacts your next car buying journey.
