Copart to Acquire ACV Auctions for $1.9 Billion in Cash

Copart Inc. announced a definitive agreement to acquire ACV Auctions for $10.50 per share in cash. The transaction values ACV at approximately $1.9 billion in equity and represents a consolidation of two major players in the online vehicle auction sector. ACV shares jumped 43.78% to $10.38 in after-hours trading following the announcement.

The offer prices ACV at a 45% premium to its closing price on August 10, the last trading day before media reports surfaced. It also marks a 41% premium to the 30-day volume-weighted average price through September 9. Copart stated it will fund the acquisition using cash on hand, maintaining balance sheet flexibility for future organic and inorganic investments without a financing contingency.

Deal Terms and Closing Conditions

Copart will launch a tender offer for all outstanding ACV shares. The deal is subject to a majority of shares being tendered and the expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period. Both companies' boards of directors have unanimously approved the merger, which is expected to close by year-end 2026.

Following completion, ACV will continue operating as an independent subsidiary of Copart under its existing leadership team. ACV CEO George Chamoun said joining Copart would help accelerate innovation with global scale. Copart CEO Jay Adair described the acquisition as building an industry-leading end-to-end vehicle remarketing platform.

Quarterly Results Miss Estimates

Copart posted mixed fiscal fourth-quarter results on Thursday. Earnings of 35 cents per share missed the consensus estimate of 38 cents. Revenue of $1.15 billion beat expectations of $1.14 billion. The company’s performance underscores the ongoing integration of digital and physical auction networks in the automotive sector.

ACV Trading Metrics and Volume

ACV Auctions has a market capitalization of $1.23 billion and approximately 169.81 million shares outstanding. The stock’s 52-week high is $10.60 and its low is $4.07. On Thursday, ACV experienced elevated trading with 19.62 million shares traded, approximately 4.6 times its average daily volume of 4.26 million shares.

The digital marketplace for wholesale vehicle transactions has fallen 30.11% over the past 12 months. ACVA is currently trading at about 48.2% of its 52-week range. In the regular session, the stock fell 2.04% to close at $7.22, according to data from GN stocks/shares-surge. The Relative Strength Index stands at 49.10, indicating neutral momentum prior to the deal announcement.