Copart to Acquire ACV Auctions for $1.9 Billion in Cash Deal

Copart has entered a definitive agreement to acquire digital wholesale marketplace ACV Auctions for approximately $1.9 billion in cash. The deal, announced on September 10, 2026, will see Copart launch a tender offer at $10.50 per share for all outstanding ACV stock.[1][4]

The purchase price represents a 45% premium over ACV's closing price on August 10, the last trading day before rumors of a potential transaction surfaced. Following the announcement, ACV shares surged more than 43% in premarket trading, settling near the $10.43 mark, while Copart shares climbed roughly 7%.[1][2]

The acquisition marks a strategic expansion for Copart, a Dallas-based giant known primarily for its physical salvage auction yards and insurance-damaged vehicle sales. By absorbing Buffalo-based ACV, Copart gains an immediate foothold in the dealer-to-dealer wholesale remarketing channel.[4]

ACV operates entirely digitally, typically listing inventory directly from dealership lots without maintaining physical storage yards. In 2025, the platform processed more than 800,000 vehicles, generating over $10 billion in transaction volume across a network of 22,000 active buyers.[4]

Under the terms of the agreement, ACV will continue to operate as an independent subsidiary. George Chamoun, ACV's chief executive, will remain at the helm alongside the existing leadership team.[4]

Copart intends to fund the transaction entirely with cash on hand, bypassing any financing conditions. The boards of directors for both companies have unanimously approved the merger, which is slated to close by the end of 2026, pending regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act.[2][3]

The deal arrives as Copart navigates shifting dynamics in its core business. During its fiscal fourth-quarter earnings call, the company reported a 2.4% year-over-year revenue increase to $1.15 billion, edging past the $1.14 billion consensus estimate.[1]

However, Copart's earnings per share fell short at $0.35 against a projected $0.38, pressured by rising operational costs. The company disclosed that its operating expense per vehicle climbed 12.7% year-over-year in the fourth quarter, driven by investments in long-haul delivery and wholesale facility expansion.[1][4]

Copart CEO Jay Adair addressed the cost increases on the earnings call, stating, "We're aware of it, we've identified it," and emphasized that bringing those expenses down is a priority. Adair noted that integrating ACV's dealer network could improve returns, particularly for drivable, insurance-damaged vehicles.[4]

The merger agreement includes reciprocal termination fees to protect both parties. If ACV accepts a superior proposal under specific conditions, it will owe Copart $57.7 million. Conversely, if the deal collapses due to regulatory hurdles, Copart is liable for a $115.3 million reverse termination fee.[3]

Industry analysts view the acquisition as a play for complementary infrastructure rather than immediate cost-cutting. Copart's physical yards can serve as consolidation hubs for scattered dealership trade-ins, solving a persistent logistics bottleneck for ACV's digital sellers.[4]

Management expects the transaction to be earnings-neutral in its first full year and accretive to Copart's earnings per share by fiscal 2028. The combined entity will now test whether routing digital wholesale transactions through a physical salvage network can offset the 12.7% rise in operating costs Copart recorded this quarter.[1]