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.
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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.
