Copart has agreed to acquire ACV Auctions in a US$1.9b all cash takeover that values the digital wholesale vehicle marketplace at US$10.50 per share. The offer puts ACV Auctions' stock at roughly 2.2x trailing sales, above the Commercial Services sector at about 1.3x and its peer group near 1.6x. The stock has declined 46.0% over the past 5 years, making the buyout level a key test of what the underlying revenue stream is worth. Copart plans to fold ACV's digital wholesale vehicle marketplace and inspection technology into its physical auction network. Community views on ACV Auctions are split, with a bull case calling the shares 34% undervalued and a bear case seeing them as roughly fairly valued after analysts lifted fair value from about $9.34 to roughly $10.13 on the deal terms.
ACV Auctions Inc.Copart agreed to acquire ACV Auctions for $1.9b all cash at $10.50/share, a buyout premium for ACV holders.
Copart IncCopart is spending $1.9b cash to acquire ACV and fold its digital marketplace into its physical auction network; effect on Copart unclear.
