TrueCar stockholders greenlight purchase by Painter-led entity
TrueCar booth at NADA Show 2022 in Las Vegas. Photo by Nick Zulovich.
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TrueCar’s stockholders voted late last month to approve the previously announced acquisition of the company by Fair Holdings, an entity led by TrueCar founder and former CEO Scott Painter.
The deal is expected to close this month. Once that happens, TrueCar stockholders would receive $2.55 in cash per share. TrueCar will become a privately owned company and Painter would return as CEO.
“Approval of the transaction by stockholders is a pivotal moment for TrueCar,” said Jantoon Reigersman, current TrueCar CEO, in a news release. “This transaction is a win-win for our Company, our investors, our affinity partner network, Certified Dealers and car buyers nationwide.
“We are delighted to deliver a compelling premium to stockholders, and pleased that Fair Holdings intends to build on TrueCar’s position as a trusted platform that adds value and transparency to the car shopping experience,” Reigersman said.
TrueCar announced Oct. 15 that it was going private through a deal in which Fair Holdings, Inc. — led by Painter — agreed to acquire the company in an all-cash transaction.
The go-private deal was valued at $2.55 per share, representing an equity value of roughly $227 million.
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A spokesperson said in October on behalf of TrueCar via email that the company’s board “negotiated a compelling price for shareholders” and that the $2.55 per share cash purchase price is roughly a 72% premium above where TrueCar’s price per share closed Oct. 14.
