Copyright Los Angeles Times
Scott Painter, founder of Santa Monica-based automotive firm TrueCar Inc., agreed to acquire the publicly-traded company for $260 million from Caledonia (Private) Investments Pty Limited, Caledonia US, LP and others. A cash consideration valued at $2.55 per share will be paid by Painter. “Through this transaction, we are pleased to deliver compelling value to TrueCar stockholders,” said Barbara Carbone, chairman of TrueCar, in a statement. “The Board unanimously approved this transaction after a thorough and careful evaluation of potential value creation opportunities, and we are confident it is in the best interest of TrueCar stockholders and other stakeholders.” The transaction is being financed by a combination of an equity commitment from an affiliate of a large, innovative dealer group and cash on the company’s balance sheet. It is expected to close by early 2026. Upon completion of the transaction, Painter will return as chief executive. “Our decision to acquire TrueCar is driven by the strength of its network of 8,500 franchised and independent dealers, many of whom are among the most forward-thinking in the country,” said Painter, in a statement. “These are dealers who know how to leverage technology, upfront pricing and customer trust to serve buyers. I’ve always believed that partnerships and brand alignment are central to creating value for both dealers and customers, and this principle has long been at the heart of TrueCar’s offerings.” Morgan Stanley & Co. LLC acted as financial advisor, and Alston & Bird LLP acted as legal advisor for TrueCar Inc. B. Riley Securities Inc. acted as financial advisor for Scott Painter, and Perkins Coie LLP acted as legal advisor.
