Copart Agrees to Acquire ACV Auctions for $10.50 a Share in $1.9 Billion All-Cash Deal

Copart agreed to acquire all outstanding shares of ACV Auctions for $10.50 per share in cash, valuing the online automotive marketplace at approximately $1.9 billion. The announcement sent ACV Auctions shares surging roughly 44% in after-hours and premarket trading, with the stock reaching $10.43 in early Friday trading. Copart shares also climbed, rising about 6.8% to $32.84 in premarket action after the company also posted its fourth-quarter financial results.

Needham downgraded its rating on ACV Auctions following the acquisition announcement, a move typical when a stock trades near its all-cash takeout price and further upside becomes limited. ACV Auctions options were among those expected to see elevated volume on Friday alongside other high-profile movers.

By the close of the session on September 11, law firm Brodsky and Smith announced an investigation into ACV Auctions' board of directors over potential breaches of fiduciary duty in connection with the deal. The firm is examining whether the board conducted a fair sale process and whether $10.50 per share represents adequate value for shareholders.