Online car retailer Cazoo steers into new markets with $7bn merger

A UK online car retailer has announced plans to complete a $7bn merger with a US acquisition company.

Cazoo Holdings, which is headquartered in London and is aiming for further international expansion, has signed a definitive business combination agreement with AJAX I, a special purpose acquisition company based in the United States.

The combined company will be named Cazoo, and is predicted to report revenues of nearly £1bn for 2021 and a growth rate of more than 300 per cent in its second year of operations.

The deal would see Cazoo valued at approximately $7bn and is expected to boost international expansion plans begun by Cazoo Holdings, which operates in the UK, Portugal, France and Germany.

Alex Chesterman, founder and CEO of Cazoo, commented: “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.

“This deal will provide us with almost $1bn of further funds to fuel our growth and I am delighted to be partnering with Dan and his team at AJAX to rapidly expand and deliver the best car buying experience to consumers across Europe.”

Dan Och, founder of AJAX, said: “We are incredibly excited to have the opportunity to partner with Alex and the exceptional team at Cazoo.

“Alex has proven to be one of Europe’s most successful serial entrepreneurs and we are proud to be supporting the growth of this world-class team, brand and platform.

“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 and am looking forward to joining the board of Cazoo and working with Alex and his team.”