Vehicle listings site TrueCar has closed the sale of its industry-data subsidiary ALG to J.D. Power.
The $135 million sale, which was announced in August, nets TrueCar $112.5 million in cash and deferred payments of up to $22.5 million. The exact amount of future payments is contingent on ALG achieving certain financial results that weren’t spelled out in the closing announcement.
The sale boosts TrueCar’s cash balance to $270 million, and leaves the company debt free, the company stated.
TrueCar, the No. 4 U.S. auto listings site in terms of revenue, plans to use the proceeds to repurchase up to $75 million in shares, a process already underway, and to maintain strategic flexibility, the company stated.
“We are very pleased to reach today’s milestone, which reinforces our commitment to creating shareholder value,” said Mike Darrow, TrueCar president and CEO.
“With over $270 million of cash on the balance sheet and no outstanding debt, we are in a strong financial position to accelerate toward our vision of building the most flexible and convenient digital car buying marketplace.”