ACV Auctions (NASDAQ:ACVA) shares rose 43.6% in premarket trading on Friday after Copart (NASDAQ:CPRT) agreed to acquire the online vehicle auction company in an all-cash transaction valued at approximately $1.9 billion.
Under the agreement, Copart will pay $10.50 per share for ACV Auctions, representing a premium of approximately 45% to ACV’s previous closing share price.
ACV operates a digital marketplace for wholesale vehicle transactions, connecting dealers and commercial buyers and sellers of used vehicles. Copart operates a vehicle auction business supported by physical infrastructure and a buyer network.
The source said the acquisition comes as Copart seeks to expand beyond its existing auction operations amid slower vehicle volume growth.
Copart Cites Combination of Digital and Physical Platforms
“This acquisition reflects a significant milestone in our growth strategy by creating an industry-leading end-to-end vehicle remarketing platform that is fully digital,” Copart Chief Executive Officer Jay Adair said. “ACV has built a differentiated, technology-driven marketplace that perfectly complements our extensive physical infrastructure and expansive buyer network.”
According to the source, Adair said the combined company would seek to increase efficiency across the automotive market and provide greater transparency to customers across vehicles of different conditions.
He also said the transaction aligns with Copart’s growth priorities, including expansion in the US whole-car market and technology-enabled services.
The acquisition would combine ACV’s digital wholesale vehicle marketplace with Copart’s physical auction infrastructure and buyer network.
ACV Auctions stock price
Copart stock price
