Copart to buy ACV Auctions in $1.9B cash deal

Copart has agreed to acquire ACV Auctions (ACVA) in an all-cash transaction valuing the digital vehicle marketplace at approximately $1.9 billion. The deal prices ACV at $10.50 per share and marks one of Copart’s largest strategic moves in expanding its presence in automotive auctions and remarketing.

Under the terms of the agreement, Copart will launch a cash tender offer to purchase all outstanding shares of ACV common stock at $10.50 per share. The tender offer structure provides a direct path for ACV shareholders to sell their shares once the offer is open and conditions are satisfied.

Completion of the acquisition is contingent on several key conditions, including that a majority of ACV’s outstanding shares are validly tendered and not withdrawn. The parties also require expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, alongside other customary closing conditions for a transaction of this type.

Both Copart’s and ACV’s boards of directors have unanimously approved the agreement. Copart intends to fund the acquisition entirely with cash on hand and has stated that the transaction is not subject to any financing condition, reducing execution risk tied to external funding markets.

Copart described the acquisition as a way to add a scaled dealer-to-dealer digital wholesale marketplace to its existing salvage-auction business. By combining Copart’s global buyer network and physical infrastructure with ACV’s online platform, the company expects to broaden its reach across different segments of the used-vehicle ecosystem.

The combination is also expected to integrate ACV’s vehicle inspection capabilities, condition data, and AI-driven valuation tools with Copart’s extensive vehicle datasets. Copart has indicated that this integration should generate near-term cost and revenue synergies, though specific targets were not disclosed in the available information.

Copart expects the acquisition to be neutral to its earnings per share in the first full year of ownership. Beyond that, the company projects that the deal will become accretive to earnings beginning in its fiscal year 2028, reflecting anticipated synergies and growth from the combined operations.

Following the completion of the transaction, ACV is expected to operate as an independent subsidiary within Copart. ACV will continue to be led by its existing leadership team, preserving continuity in its digital marketplace operations while benefiting from Copart’s broader scale and resources.

The companies have guided that the transaction is expected to close by the end of calendar year 2026, subject to receipt of required regulatory approvals and satisfaction of other customary conditions. The extended timeline reflects the need to complete antitrust review and the tender offer process.

Investors reacted positively to the announcement. ACV Auctions (ACVA) shares jumped more than 40% in after-hours trading after the deal was disclosed. Copart shares also advanced in after-hours trade, with at least one report noting a gain of 8.6% to $33.40, signaling market approval of the strategic and financial rationale for the acquisition.