Copart said on 16 October it had completed its acquisition of ACV Auctions for $10.50 per share in cash, a deal valuing the Buffalo-based online wholesale car marketplace at about $1.9bn.
Deal terms and financing
Copart's tender offer, made through its subsidiary Apple Merger Sub, expired at 5pm New York time on 15 October and was not extended. 116,818,409 ACV shares, about 68.43% of the outstanding stock, were validly tendered, meeting the minimum condition. Copart then merged the subsidiary into ACV under section 251(h) of Delaware law, so no ACV stockholder meeting was required, and untendered shares were converted into the right to receive $10.50 in cash.
“We are pleased to complete the acquisition of ACV”
Regulatory approvals and timing
All conditions to the offer were satisfied or waived. ACV shares have ceased trading on the NYSE and the company is now a wholly owned subsidiary of Copart.
Market context
ACV will continue to operate as an independent Copart subsidiary under its current management, led by chief executive George Chamoun. The deal, agreed on 10 September at a premium of about 45% to ACV's unaffected price, takes Copart beyond salvage auctions into dealer-to-dealer used-car remarketing.
