Vehicle listings company TrueCar Inc. said Monday it completed the sale of its ALG subsidiary to J.D. Power for $135 million.
The Santa Monica, Calif., company said the purchase price includes $112.5 million in cash at closing and up to $22.5 million in deferred payments on achieving specific financial results. TrueCar announced the sale agreement in August.
TrueCar said the transaction will boost the company’s cash balance and the proceeds will support an ongoing share repurchase program worth up to $75 million.
“We are very pleased to reach today’s milestone, which reinforces our commitment to creating shareholder value,” TrueCar CEO Mike Darrow said in a statement. “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.”
In August, J.D. Power CEO Dave Habiger said ALG will complement Power’s existing data and analytics tools and valuation expertise.