Digital car-sales marketplace ACV Auctions explores potential takeover

ACV Auctions Inc., a digital wholesale marketplace for used-car dealerships, is reviewing strategic options that may include a sale or a partnership after receiving takeover interest, according to people familiar with the matter. The Buffalo, N.Y.-based company has engaged financial advisers to run the process, which could still result in ACV remaining independent. Any transaction is weeks away, the people said, speaking on condition of anonymity because the information is private. Shares of ACV fell 47% over the past year despite a 10% year-over-year revenue increase in the second quarter. The stock closed at $7.26 on Aug. 10, valuing the company at about $1.2 billion. ACV operates a digital platform that connects dealers for wholesale used-car auctions, offering financing, transportation and more than 1 million vehicle inspections annually, according to its website. The review follows similar moves by other auto-industry players; CCC Intelligent Solutions Holdings Inc., a car-insurance software provider, is also exploring a sale amid pressure from activist investor Elliott Investment Management, Bloomberg reported last month.