ACV Auctions Inc. (NYSE:ACVA) shares jumped 43.78% to $10.38 in after-hours trading on Thursday after Texas-based provider of online vehicle auction and remarketing services Copart Inc. (NASDAQ:CPRT) announced a definitive agreement to acquire the company for $10.50 per share in cash.

Premium Pricing Drives Investor Enthusiasm

The all-cash transaction values ACV at approximately $1.9 billion in equity. The $10.50 per-share offer represents a roughly 45% premium to ACV’s unaffected closing price on Aug. 10, the last trading day before media reports of a potential deal surfaced. It also marks a 41% premium to the stock’s 30-day volume-weighted average price through Sep. 9.

Copart will launch a tender offer for all outstanding ACV shares. The transaction is subject to a majority of shares being tendered, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and other customary closing conditions.

The deal carries no financing contingency. Copart said it will fund the acquisition through cash on hand while maintaining sufficient balance sheet flexibility to pursue further organic and inorganic investments.

Copart also posted mixed fiscal fourth-quarter results on Thursday, with earnings of 35 cents per share missing the 38-cent consensus estimate, while revenue of $1.15 billion beat expectations of $1.14 billion.

Executives Frame Deal as Industry Consolidation

Copart CEO Jay Adair said the acquisition builds an “industry-leading end-to-end vehicle remarketing platform.”

ACV CEO George Chamoun said joining Copart would help “accelerate innovation with global scale.”

According to ACV, both companies’ boards of directors have unanimously approved the merger, which is expected to close by year-end 2026. Following completion, ACV will continue operating as an independent subsidiary of Copart under its existing leadership team.

Trading Metrics, Technical Analysis

ACV Auctions has a market capitalization of $1.23 billion, a 52-week high of $10.60 and a 52-week low of $4.07. The company has approximately 169.81 million shares outstanding.

The Relative Strength Index (RSI) of ACVA stands at 49.10.

On Thursday, ACVA experienced an extremely elevated trading session, with 19.62 million shares traded compared with an average daily volume of 4.26 million shares. This was approximately 4.6 times the stock’s average trading volume.

The mid-cap stock of the digital marketplace for wholesale vehicle transactions has fallen 30.11% over the past 12 months.

ACVA is currently trading at about 48.2% of its 52-week range.

Price Action: In the regular session, the stock fell 2.04% to close at $7.22, according to Benzinga Pro data.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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