Automotive pricing and information company TrueCar has announced that it is acquiring digital retailing software company DealerScience for $32 million. This deal is based on $27 million upfront and $5 million in earn-outs. DealerScience is going to operate as a subsidiary of TrueCar with an emphasis on product development, sales, and customer training.
As a result of the acquisition, TrueCar and DealerScience dealer customers will see improvements that enable them to expedite vehicle desking, calculate accurate monthly payments, and streamline consumer experiences.
“I am excited to see DealerScience join forces with TrueCar,” said DealerScience founder Andrew Gordon in a statement. “Our two companies share a common passion for helping both consumers and dealers leverage technology through strong product innovation and customer service. Together, we are intent on ensuring that customers of both DealerScience and TrueCar continue to benefit from the expertise and pace of innovation that they have come to depend on and trust. We also expect to provide to both companies’ dealers improved data products and services enabled by the combination of TrueCar and DealerScience.”
As a digital auto marketplace, TrueCar provides comprehensive pricing transparency about what other people paid for their cars. And it enables consumers to engage with TrueCar Certified Dealers, who aim to provide superior purchase experiences. Currently, TrueCar operates its own branded website and its network of more than 16,000 Certified Dealers powers car-buying programs for some of the largest U.S. membership organizations such as USAA, AARP, American Express, AAA, and Sam’s Club. Interestingly, over half of all new car buyers engage with the TrueCar network during the purchasing process.
DealerScience is going to maintain its team in Boston, Massachusetts. And Gordon will become the VP of Digital Retailing at TrueCar.
According to Auto News, the Car and Driver publication launched a tool using DealerScience’s software last month so customers would be able to see detailed vehicle payments on dealer websites. This tool is called Penny-Perfect Payments.
“Consumers expect to be able to configure more elements of their car deal online and they want greater transparency and validation of the elements of their car deal,” added TrueCar’s president and CEO Chip Perry. “We believe that dealers that place DealerScience’s state-of-the-art digital retailing tools on their own websites, in their showroom and within TrueCar’s marketplace will be well positioned to generate strong growth and profitability.”
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