AutoNation takes minority ownership stake in TrueCar

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AutoNation, (NYSE:AN) announced its acquisition of a 6.1% minority ownership stake in TrueCar (NASDAQ:TRUE) for an undisclosed amount.

The auto retailer said its decision to invest in TrueCar signals its continued commitment to emerging technologies and its constant focus on providing peerless customer experiences.

TrueCar’s digital marketplace is seen being well positioned to enhance the digital car buying experience at AutoNation.

“Our companies believe this opens the door to an opportunity to collaborate on ways to provide a superior digital buying and selling experience for consumers,” noted TrueCar CEO Mike Darrow on the deal.

Shares of AutoNation (AN) were flat in premarket trading on Tuesday, while TrueCar (TRUE) jumped 6.67%.

Compare growth, profitability and valuation metrics on AN and TRUE side by side.

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