Santa Monica-based TrueCar Inc. is set to go private in an all-cash deal valued at about $227 million.
Fair Holdings Inc., an investment consortium led by TrueCar founder Scott Painter, acquired the online automotive retailer for $2.55 a share, according to the announcement released on Oct. 15. That’s a 72% premium over the closing price on the prior day of the announcement.
“Through this transaction, we are pleased to deliver compelling value to TrueCar stockholders,” said Barbara Carbone, board chair of TrueCar. “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 deal, which is expected to close by the end of this year, or early 2026, must be approved by TrueCar shareholders – and it also must cross regulatory hurdles. Also, the agreement includes a 30-day go-shop period and with terminations fees.
The return
Upon the deal closing, Painter will return as chief executive officer.
“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, who first launched the company in 2005 and took it public in 2014.
The following year, Painter stepped down as chief executive amid a major exit of car dealers from the online retail site over concerns about pricing, Bloomberg News reported. Since then, Painter has started Fair Holdings and been involved in other business ventures.
The acquisition agreement comes at a challenging time for the automotive industry, which is contending with economic headwinds including ongoing shifts in tariffs.
Spending on new cars has been slightly strong – up 6.7% in September and year-over-year gains, The Street reported, citing Cox Automotive data. Car volumes dropped by 14.2% last month. Wholesale used-vehicle prices fell slightly in September, The Street reported, citing the Manheim Used Vehicle Value Index. But prices increased 2% year over year.
TrueCar has weathered the storm. Recently, the company reported its second-quarter earnings for 2025, showing a mixed-bag of results. It missed earnings per share expectations, posting an EPS of -$0.09 compared to the expected $0.06. On the other end, revenue exceeded forecasts, generating $47 million during the quarter versus the anticipated $45.2 million.
