Under the terms of the agreement, Akinvest will offer financing on certain qualified salvage and whole vehicles as well as assistance in arranging export transportation and complying with customs documentation requirements.
Copart sells over one million salvaged vehicles per year via the Internet using its proprietary online sales technology, VB2. Recently, Copart has entered into agreements to act as an Application Service Provider, providing VB2 technology to 40 independent wholesale auction houses. In the last quarter, 22 percent of all salvage vehicles sold by Copart were exported out of the United States.
"We are pleased to have developed this relationship with Akinvest. We expect the services that Akinvest provides to make purchasing by our international buyers easier and less complicated, both for buyers of salvage vehicles though Copart and whole cars though our wholesale partners," said Copart CEO Willis J. Johnson. "We are confident Akinvest will contribute to the worldwide appeal of our VB2 technology."
"Akinvest has been a pioneer in remote foreign purchasing directly and on the Internet," said company Vice President Dwight Grovum. "Our expertise is in the expedition of product delivery including multilingual registration service, payment assistance, customs arrangements, land and sea transportation and containerization -- all supplied in house. We like to think that Akinvest has an assembly line of services for foreign buyers to receive the product with maximized efficiency and reliability."
Akinvest was founded in 1999 and is based in Toronto, Canada. It has evolved from a wholesale dealer to its current role as a major service provider to the international export community. The company has a network of representatives in the United States to assist in purchase and exportation of vehicles and equipment.
Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage vehicles, principally to licensed vehicle dismantlers, rebuilders, repair licensees and used vehicle dealers. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company operates 113 facilities in the United States and Canada. It also provides services in other locations through its national network of independent salvage vehicle processors.
Safe Harbor Concerning Forward-Looking Statements
This press release contains statements concerning Copart's intention to expand its business by implementing its VB2 auction technologies in the wholesale automobile auction market, including implementations of VB2 at non-affiliated wholesale auctions. This strategy presents numerous risks associated with new business ventures. Copart cannot predict what effect, if any, implementation of VB2 at third party auctions will have on Copart's business or operating results. In particular, Copart's historic experience has focused on auctions of salvage vehicles and, more recently, on public auctions of non-salvage vehicles. Copart has no experience licensing or otherwise selling technology products or providing auction management or support services to unrelated auctions. Our business has become increasingly reliant on proprietary and non-proprietary technologies, and it is difficult to forecast with accuracy what impact these changes in our business model will have. Our VB2 strategy presents risks associated with the need to protect our intellectual property rights and the increased potential for intellectual property litigation. For a more detailed discussion of the risks that may affect Copart's business and operating results, please refer to the information under the captions "Factors That May Affect Future Results" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.