CCC Intelligent Solutions (CCC) shares rose more than 8% on Tuesday.
Salvage auto auction firm Copart (CPRT) is reportedly in talks to acquire the insurance software provider.
Copart faces competition from private equity firms GTCR and Veritas Capital, according to Bloomberg.
CCC previously hired Morgan Stanley to manage a sale process after activist investor Elliott Investment Management took a significant stake.
Copart shares fell slightly following the report.
Discussions remain ongoing with no guarantee of a finalized deal.