Copart Inc. has agreed to acquire ACV Auctions Inc. in an all-cash deal valuing the car auction marketplace at $1.9 billion, or $10.50 per share. The offer price represents a 45 percent premium over ACV's closing price of $7.22 on Thursday, September 10, prior to the announcement, and ACVA shares surged 49 percent week-on-week on the news. Copart said the takeover would create an industry-leading, fully complete remarketing platform spanning dealer trade-ins, wholesale marketing, salvage disposition, and international resale, supported by artificial intelligence tools for valuation and inspection. Following the announcement, Needham & Company downgraded ACVA to hold from buy and removed its $9 price target, calling Copart's offer fair and noting a competing bid is unlikely given the limited number of players in the auto wholesale market. The deal followed ACV's wider second-quarter net loss of $8.2 million, up 12.3 percent from $7.3 million a year earlier, though total revenues rose 10.4 percent to $213.9 million. The tender offer is subject to the successful acquisition of a majority stake in ACVA or expiration of the waiting period, with the transaction expected to close by the end of the year.
ACV Auctions Inc.Copart agreed to acquire ACV Auctions for $1.9B, a 45% premium to the prior close, driving ACVA shares up 49%.
Copart IncCopart is acquiring ACV Auctions for $1.9B to create an industry-leading remarketing platform.
Central Holding Group Co Ltd