Cazoo, the UK online car retailer, announced a $7.0bn business combination with Ajax I, a publicly-traded special purpose acquisition company (“SPAC”).
Upon closing of the transaction, the combined company will be listed on the New York Stock Exchange under the new ticker symbol “CZOO”.
The deal is expected to provide $1,605m in gross proceeds including $805m cash in trust from AJAX I and an $800m PIPE led by the AJAX sponsors and D1 Capital Partners and joined by new and existing investors including Altimeter, funds & accounts managed by BlackRock, Counterpoint Global (Morgan Stanley) and Fidelity Management and Research Company LLC, Marcho Partners, Mubadala Capital, Pelham Capital, Senator Investment Group and Spruce House Partnership.
The transaction will accelerate growth across Europe including subscription model, brand & vertical infrastructure.
Founded in 2018 by Alex Chesterman, who will continue to lead the company, Cazoo is an online car retailer that has developed a platform and brand with a fully integrated model where it owns and reconditions all its cars before offering them for sale on its website for either delivery or collection in as little as 72 hours. It has delivered over 20,000 cars to consumers across the UK and, following its recent acquisitions, it is also now present in Germany and France.
The company currently has a team of 1,800+ across UK, Germany, France and Portugal and expects to achieve revenues approaching $1bn in 2021. Ajax’ founder, Dan Och, will join the combined Board of Directors.