TrueCar stock soars after $227 million go-private acquisition deal

Investing.com -- Truecar Inc (NASDAQ:TRUE) stock surged 59% Wednesday after the automotive digital marketplace announced it will be acquired by Fair Holdings in an all-cash, go-private transaction valued at approximately $227 million.

The deal, unanimously approved by TrueCar’s board of directors, will pay stockholders $2.55 per share in cash. Fair Holdings is led by TrueCar founder Scott Painter, who will return as CEO following the completion of the transaction.

The acquisition follows an extensive strategic review process initiated by TrueCar in late 2024. Fair Holdings has informed TrueCar that it is negotiating with various financial and strategic investors to help finance the transaction through equity investments.

"Through this transaction, we are pleased to deliver compelling value to TrueCar stockholders," said Barbara Carbone, Chair of the TrueCar Board of Directors, who noted the board unanimously approved the deal after evaluating potential value creation opportunities.

The transaction includes a standard 30-day "go-shop" period ending November 13, 2025, allowing TrueCar to solicit alternative acquisition proposals. The deal is expected to close in the fourth quarter of 2025 or early 2026, subject to stockholder approval and regulatory clearances.

Financing for the transaction will come from a combination of an equity commitment from an affiliate of a large dealer group and TrueCar’s existing cash reserves. The company’s largest stockholder, Caledonia, has committed to vote in favor of the transaction.

Upon completion, TrueCar will be delisted from the Nasdaq Global Select Market as Painter focuses on achieving profitable growth and renewed alignment with the automotive industry through the company’s network of 8,500 franchised and independent dealers.