Copart has agreed to acquire ACV, one of the largest primarily digital automotive marketplaces in the country, in an all-cash transaction funded from cash on hand with no financing conditions, Executive Chairman and CEO Jay Adair said on the company's Q4 FY 2026 earnings call. Copart expects the deal to close by the end of the calendar year, with ACV operating as an independent subsidiary led by its existing team, and expects the transaction to be breakeven initially and accretive to earnings in the first full year, which will be FY 2028, according to Senior VP and CFO Leah Stearns. For the fourth quarter, consolidated revenue grew to $1.2 billion, up 2.4% year-over-year, while net income attributable to Copart fell 17.4% to $327.4 million, or $0.35 per diluted common share, and operating income decreased 10.6% to $368.9 million. Global gross profit for the quarter was $481 million with gross margin of 41.8%, and for the fiscal year net income attributable to Copart decreased 4.4% to $1.48 billion, or $1.55 per diluted common share. Adair said OpEx per car in Q4 2026 versus Q4 2025 was up 12.7% and that the company will work toward reducing costs on a per car basis, while global unit sales fell 2.9%, with domestic units down 5.7% and international units up 10%. As of the end of July, Copart had approximately $5.7 billion of liquidity, comprising $4.5 billion in cash, cash equivalents and held-to-maturity securities plus $1.25 billion of capacity under its revolving credit facility with no debt outstanding.
ACV Auctions Inc.Copart agreed to acquire ACV in an all-cash deal, a positive M&A event for the target.
Copart IncCopart announced an all-cash acquisition of ACV expected to be accretive in FY2028, alongside Q4 results.
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