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AutoNation (NYSE:AN) said Tuesday that it has acquired a 6.1% minority stake in TrueCar (NASDAQ:TRUE), an automotive digital marketplace.
The automotive retailer said that investing in TrueCar signals its continued commitment to emerging technologies. TrueCar allows auto buyers and sellers on its platform to connect to its nationwide network of certified dealers.
There were no financial details disclosed.
TrueCar shares surged over 35% Tuesday, currently priced around the $2.65 mark. AutoNation is up around 2% at the time of writing.
“We are excited by this announcement from AutoNation, America’s leading automotive retailer, as we see their commitment to a great Customer experience as fully aligned with the values of TrueCar and our offerings,” said Mike Darrow, TrueCar’s President and Chief Executive Officer. “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.”
AutoNation Chief Executive Mike Manley said the firm believes TrueCar is well-positioned to enhance the digital car buying experience. He added that the deal will also provide the opportunity for closer commercial collaboration between the companies.
