TrueCar acquires Digital Motors dealership sales platform, hopes to ‘speed up’ TrueCar+

Vehicle ad company TrueCar has acquired online dealership platform Digital Motors to bolster the company’s launch of its new digital retail service, TrueCar+.

Digital Motors, an Irvine, Calif.-based software company that serves dealerships looking for online retail support, launched its flagship product ahead of schedule in March 2020. It quickly captured the attention of dealers looking to cash in on consumer interest fueled by the pandemic. in online automotive retail.

Terms of the agreement were not disclosed.

Digital Motors CEO Andreas Hinrichs said in a press release on Monday that his company’s “transactional orientation” would pair well with TrueCar+.

“We are thrilled to join TrueCar and help support the expansion of TrueCar+, making buying cars online an enjoyable, engaging and efficient experience for all parties involved,” Hinrichs said.

TrueCar said in May it was exploring acquisition options, touting funds to do so via the company’s $234.8 million in assets and no debt on its first-quarter balance sheet. He was specifically looking for offerings that could serve as “integration opportunities” with TrueCar+.

“Our acquisition of Digital Motors is a key step in accelerating this market, providing immediate access to new capabilities to enable the development of a secure online buying and financing experience,” said Mike Darrow, CEO of TrueCar, in the press release.

Alain Nana-Sinkam, Senior Vice President of Business Development at TrueCar, said Automotive News that the company has already started implementing Digital Motors in the TrueCar+ device.

“We’re working hard to build integrations with some of the key features of the Digital Motors platform that accelerate what we want to accomplish with TrueCar+,” Nana-Sinkam said.

Digital Motors’ experience in the automotive e-commerce space is also important to TrueCar, as it aims to streamline the vehicle shopping experience on TrueCar+.

“Everybody likes an easier deal. Everybody likes a faster deal,” Nana-Sinkam said. “So being able to create solutions that bring efficiencies to the car buying process is something everyone can support, whether you’re a dealer, customer, lender or product supplier. service protection.”

TrueCar Shares were essentially unchanged on Tuesday, trading at $3.24.

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