On September 11, Copart rose 7.8% overnight, trading at $33.15 per share. The surge was primarily driven by the simultaneous announcement of a major acquisition and fiscal Q4 earnings.

Copart disclosed it will acquire ACV Auctions for $10.50 per share in an all-cash deal valued at approximately $1.9 billion, funded entirely with cash on hand and not subject to a financing condition. The boards of both companies unanimously approved the transaction, which is expected to close by the end of the year. Post-closing, ACV will operate as an independent Copart subsidiary under its existing leadership. Regulatory filings revealed that ACV would owe a $57.7 million termination fee if it exits the deal under specified conditions.

On the earnings front, Copart posted Q4 revenue of $1.152 billion, up 2.4% year-over-year and beating the consensus estimate of $1.144 billion. However, EPS came in at $0.35, missing the $0.38 analyst estimate and down from $0.41 a year earlier. Net income declined 17.4% to $327.4 million, while operating expenses rose 10.0%, with facility operations costs climbing 7.7% to $450.7 million. Full fiscal year revenue reached $4.7 billion, up 0.4% year-over-year.

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