ACV Auctions soars after Copart agrees $1.9 billion takeover

Shares of wholesale vehicle marketplace ACV Auctions (ACVA.N) jumped 43.4% to $10.35 in premarket trading after online vehicle auctioneer Copart (CPRT.O) agreed to buy the company in an all-cash deal worth about $1.9 billion.

Copart will pay $10.50 per share, representing a 45% premium to ACVA's last close.

Copart shares were up 7.6% at $33.10, and the company also reported fourth-quarter revenue above analysts' estimates, according to LSEG-compiled data.

Copart is seeking to expand beyond its core auction business amid slowing vehicle volume growth.

Evercore is serving as financial advisor to Copart, and J.P. Morgan Securities is advising ACV.

Talks that ACVA was exploring a sale were first reported on August 11.

As of the last close, ACVA stock was down 10% year to date, while CPRT was down 21.5%.