Copart has signed a definitive agreement to acquire ACV in a deal valued at approximately $1.9 billion.

Under the agreement, which was announced Thursday afternoon, Copart would acquire all outstanding shares of ACV common stock for $10.50 share in cash, representing implied equity value of $1.9 billion.

Adding ACV gives Copart a “new growth vector,” the company said, “extending its reach with dealer-to-dealer wholesale remarketing and strengthening its position across the full vehicle lifecycle.”

In a news release, Copart CEO Jay Adair said: “This acquisition reflects a significant milestone in our growth strategy by creating an industry-leading end-to-end vehicle remarketing platform that is fully digital.

“ACV has built a differentiated, technology-driven marketplace that perfectly complements our extensive physical infrastructure and expansive buyer network,” Adair said. “With ACV, we are uniquely positioned to drive efficiency and productivity throughout the entire automotive ecosystem, bringing greater transparency and superior economic outcomes to our customers for every vehicle, regardless of its condition.

“Copart has strong momentum, and this acquisition fits squarely within our growth pillars, including domestic whole-car expansion and technology-enabled services, as we continue to invest in our business on behalf of our customers.”

ACV CEO George Chamoun added, “ACV’s mission has been to transform the automotive industry by building the most trusted and efficient digital marketplace and data solutions for sourcing, selling, and managing used vehicles.

“By joining forces with Copart, we will be positioned to advance our mission, drive market expansion, and accelerate innovation with global scale. Together, we will deliver even more value to our dealer and commercial partners by offering expanded capabilities, including leveraging Copart’s nationwide footprint and a combined demand engine that ensures the right vehicle gets to the right buyer,” Chamoun said. “I am deeply grateful to our team, whose tremendous work and creativity have fueled ACV’s market leadership, and we look forward to working with Jay and the Copart team in this exciting next chapter.”

Copart plans to fund the purchase through cash on hand. The boards of both companies have unanimously approved the transaction. The deal is expected to close by year end.

Once the deal is complete, ACV will operate as an independent subsidiary of Copart, led by ACV’s existing leadership team.

Auto Remarketing will have more on this developing story.