Copart to Acquire ACV Auctions for $1.9 Billion as Auto Market Shifts

NEW YORK — Copart is expanding its automotive marketplace operations with an approximately $1.9 billion all-cash purchase of ACV Auctions, adding dealer-to-dealer wholesale vehicle remarketing to its business.

The deal announced Thursday will see Copart acquire ACV, a New York-based digital marketplace that connects vehicle dealers with commercial buyers and sellers of used vehicles.

Copart will pay $10.50 for each ACV share under the agreement, representing a premium of about 45% over ACV’s previous closing price.

ACV shares climbed more than 40% after the transaction was announced.

The acquisition comes as Copart seeks to broaden its operations beyond its traditional vehicle auction business. The company has been dealing with slower growth in vehicle volumes as insurers keep more vehicles and inflation leads consumers to cut back on auto insurance spending.

Through ACV’s digital marketplace, Copart will gain exposure to another segment of the used-vehicle industry, with a particular focus on transactions conducted between dealers.

The transaction is expected to close by the end of this year. Evercore is advising Copart, while J.P. Morgan Securities is acting as financial adviser to ACV.

Copart’s most recent financial results also helped lift the company’s shares. Fourth-quarter revenue totaled $1.15 billion, up 2.4% from the same quarter a year earlier and ahead of the $1.14 billion Wall Street estimate compiled by LSEG.

Quarterly profit fell, however, with earnings declining to 35 cents per share from 41 cents a year earlier.

Copart shares gained 8% in aftermarket trading following the earnings report.

The acquisition follows a report by Bloomberg News last month that Copart had been in discussions about a possible acquisition of CCC Intelligent Solutions, a car-insurance software company that has been considering a sale.

The developments point to Copart looking beyond its core vehicle auction operations as changing conditions reshape the automotive and insurance industries.

ACV’s digital platform will give Copart access to dealer-to-dealer transactions while expanding its participation in wholesale vehicle remarketing.

The $1.9 billion acquisition consequently represents both an expansion of Copart’s business and an effort to adapt to shifts in vehicle volumes, insurance spending and the wider used-car market.