Cazoo confirms it will go public in merger with US SPAC
Cazoo has agreed to a deal with a New York-listed SPAC in a deal which values the online used car platform at $7bn.
The company, which was founded by serial entrepreneur Alex Chesterman in 2018, will merge with Ajax I, a blank-cheque vehicle led by billionaire investor Dan Och.
The deal, which will see Cazoo list in New York, values the company at $7bn including debt, more than double the $2.6bn valuation in its private funding round last October.
The deal is a major blow to the City; there had been reports the London Stock Exchange had pushed hard for Cazoo to list at home. However the SPAC trend shows no sign of slowing down and for founders it provides a quicker and more direct way of going public.
Cazoo offers online purchases and delivery of used vehicles in the UK and Europe and the shift to online has only accelerated during the pandemic.
This morning it said it had grown 300 per cent year-on-year and expects revenues for the year to approach $1bn.
“This announcement is another major milestone in our continued drive to transform the way people buy cars across Europe. We have created the most comprehensive and fully integrated offering in the largest retail sector which currently has very low digital penetration,” Chesterman said.
The deal will provide Cazoo with up to $1.6bn in new funding which it said it will use to spend on growing its brand and infrastructure as well as expanding into new markets like Italy and Spain.
“With their constant focus on innovation, data and customer satisfaction, I have no doubt that Cazoo is going to continue to lead the way in this massive, untapped market opportunity,” Och said.