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Copart, the online vehicle auctioneer, has agreed to acquire ACV Auctions for approximately $1.9 billion in an all-cash deal. This acquisition marks Copart's entry into the dealer-to-dealer wholesale remarketing sector, as it seeks to diversify its business in response to slowing vehicle volume growth. ACV Auctions, which owns the Irish online car auctioneer TradeBid, operates a digital marketplace connecting dealers and commercial buyers of used vehicles. The purchase price represents a significant premium over ACV's recent stock price, and the deal is expected to close by the end of the year.
George Chamoun, chief executive of ACV Auctions, , alongside Conor O'Boyle, co-founder of TradeBid, an Irish company owned by ACV. Photograph: Fiona MaddenOnline vehicle auctioneer Copart on Thursday agreed to acquire ACV Auctions in an all-cash deal of about $1.9 billion , marking its entry into dealer-to-dealer wholesale remarketing.
The acquisition comes as Copart seeks to expand beyond its core auction business amid slowing vehicle volume growth, hurt by insurers retaining more vehicles and consumers cutting back on auto insurance amid inflationary pressures. Shares of ACV Auctions jumped over 40 per cent after the closing bell. ACV is headed up by US tech entrepreneur George Chamoun. ACV owns online irish car auctioneer TradeBid.
New York-based ACV operates a digital marketplace for wholesale vehicle transactions, connecting dealers, commercial buyers and sellers of used vehicles. The purchase price of $10.50 per share represents a premium of about 45 per cent to ACV’s last close, Copart said. Evercore is serving as financial adviser to Copart and J.P. Morgan Securities is to ACV, for the transaction which is expected to close by end of this year.
Last month, Bloomberg News reported that Copart was in talks to acquire car-insurance software provider CCC Intelligent Solutions, which has been exploring a sale. Copart on Thursday also posted fourth-quarter revenue above Wall Street estimates, sending the company’s shares up 8 per cent in aftermarket trading. Revenue rose 2.4 per cent to $1.15 billion from a year ago, compared with estimates of $1.14 billion, according to data compiled by LSEG.
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ACV Auctions Copart Wholesale Remarketing Tradebid Used Vehicle Marketplace