Online car retailer听Cazoo听is to go public in the US via a听blank cheque company, known as a SPAC.听
The company听has agreed a $7 billion valuation as part of the merger with Ajax I, a shell company led by billionaire investor Dan Och听which is publicly listed in听New York.听
Public listings via SPACs in the US are growing in popularity as a faster way of listing a company.听
Cazoo, founded by serial entrepreneur Alex Chesterman in 2018,听was听valued at $2.6bn听in its听latest听private funding round last October.听It will be named听Cazoo听after the merger.听
AJAX is a $805m SPAC听founded by Och in partnership with听Glenn Fuhrman and a team of strategic advisors including the founders of Chipotle, Instagram, Square and 23andMe.听听
Cazoo听is pioneering the shift to online car buying in Europe and听has already听delivered听more than听20,000 cars to consumers across the UK.听听
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Following its recent acquisitions,听Cazoo听is also now Europe鈥檚 leading car subscription player with over 6,000 subscribers across the UK, Germany and France.听It is now planning international expansion.听
Cazoo听owns听and reconditions听all its cars before offering them for sale on its website for either delivery or collection in as little as 72 hours.听听
As one of Europe鈥檚 fastest-growing businesses,听Cazoo听expects to achieve revenues approaching $1bn in 2021, a growth rate of more than 300% in its second full year of operations and has already built a team of over 1,800 across the UK, Germany, France and Portugal.听听
鈥淭his announcement is another major milestone in our continued drive to transform the way people buy cars across Europe,鈥� said听Chesterman.听听
鈥�We have created the most comprehensive and fully integrated offering in the largest retail sector which currently has very low digital penetration.听听
鈥�This deal will provide us with almost $1 billion 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.鈥�听
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Och听said:听鈥淲e are incredibly excited to have the opportunity to partner with Alex and the exceptional team at听Cazoo.听听
鈥�Alex has proven to be one of Europe鈥檚 most successful serial entrepreneurs and we are proud to be supporting the growth of this world-class team, brand and platform.听听
鈥�With their constant focus on innovation, data and customer satisfaction, I have no doubt that听Cazoo听is going to continue to lead the way in this massive, untapped market opportunity and am looking forward to joining the Board of听Cazoo听and working with Alex and his team.鈥�听
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