Fair Holdings, led by TrueCar founder Scott Painter, has completed a $227 million take-private acquisition of TrueCar in a deal backed by a strategic group that includes PenFed Credit Union, Zurich North America, AutoNation, Atlantic Coast Automotive, and several technology partners.
With the transaction closed, TrueCar will no longer be publicly traded, and Painter is returning as chief executive officer to run the business. The buyer group also includes Impel AI, ID.me, CRIF, and embedded auto insurance platform In The Car, a mix TrueCar says is designed to align lenders, insurers, dealers, and technology providers around a more integrated mobility and car-buying experience. PenFed CEO James Schenck will join the board of TrueCar’s parent company, Fair Holdings, Inc.
TrueCar and its new owners said the next chapter will prioritize profitability and “real and sustainable” earnings before scaling further through affinity and membership channels. The company plans to build on relationships with more than 11,500 dealers nationwide and pursue deeper partnerships with dealers, automakers and affiliated financial services organizations, including captive finance providers and insurers.
PenFed, positioned as a strategic lender in the new structure, said it will expand its direct auto-lending capabilities nationwide through the TrueCar platform. The partners described plans to offer faster approvals, transparent pricing and a simplified digital experience to PenFed members through the TrueCar channel.
Georg Bauer, an automotive executive with experience spanning Mercedes, BMW, and Tesla, will serve as chairman of Fair Holdings, Inc., TrueCar’s parent. AutoNation CEO Mike Manley also highlighted the deal as a way to better align consumers, dealers, and technology around a more transparent and efficient marketplace.
Support: Morgan Stanley served as exclusive financial advisor to TrueCar, with Alston & Bird as lead legal counsel, and Joele Frank, Wilkinson Brimmer Katcher as strategic communications advisor. B. Riley Securities advised Fair Holdings, Inc., with Perkins Coie acting as legal counsel.
KEY QUOTES:
“Clearly what we are driving is changing, with autonomous, connected, electric vehicles, and this transaction reflects a shared belief that how Americans access mobility is about to enter a similar transformation. TrueCar remains an important and highly relevant platform that touches nearly 10% of all U.S. car buyers. TrueCar’s core value proposition has always been to use technology to help consumers save time and money when getting their next car, and we will be focused on that mission, while also delivering sales to our dealer and industry partners. We are returning to this business with a very clear mandate: to operate with discipline and focus on generating real and sustainable profit. Once we get the company profitable, we believe there is a significant opportunity to scale with our affinity partners.”
Scott Painter, Chief Executive Officer, TrueCar
“PenFed exists to serve our members, and saving them time and money when buying and owning a vehicle is a core part of that mission. Our goal is to become the nation’s largest and most innovative direct automotive lender. TrueCar’s commitment to transparency, a digital-first experience, and its robust network of premier dealers committed to serving affinity and membership organizations aligns completely with our mission.”
James Schenck, President and Chief Executive Officer, PenFed Credit Union
“I’ve spent my career in the global automotive industry, and one thing has always been clear, strong dealers are essential to a healthy auto market. In the next chapter of TrueCar, our dealer partners will play a vital role in transforming the car-buying experience. We are deeply committed to supporting dealers—working with them to help sell more cars more efficiently, while delivering a better, more digital experience for today’s consumers. TrueCar has long been recognized for delivering in-market customers who are ready to buy, driven in part by the goodwill the brand has built with its membership organizations, and we intend to honor that commitment.”
Georg Bauer, Chairman, Fair Holdings, Inc.
“Innovation works best when the ecosystem is aligned. TrueCar’s evolution shows how consumers, dealers, and technology can come together to create a more transparent and efficient automotive marketplace.”
Mike Manley, Chief Executive Officer, AutoNation
