Cazoo is going public via $7 billion SPAC deal

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Date: 09.04.2021

Cazoo announced that it will go public through a merger with billionaire investor Daniel Och’s special purpose acquisition company.

Cazoo, founded just three years ago, is a used car marketplace based in the U.K. The company sells and delivers its cars in Britain and continental Europe. Its competitors range from Auto Trader to Carvana.

The company said it would combine with AJAX I, a U.S. blank-check firm founded by Och, in a deal valuing the business at $7 billion. Founder Alex Chesterman will stay on as Cazoo’s CEO following the SPAC merger, while Och is joining the firm’s board.

“This announcement is another major milestone in our continued drive to transform the way people buy cars across Europe,” Chesterman said in a statement Monday.

“We have created the most comprehensive and fully integrated offering in the largest retail sector which currently has very low digital penetration.”

Cazoo is expected to raise $1.6 billion from the deal with AJAX I, including $805 million in a cash trust from the SPAC and a further $800 million from private investors.

The article was prepared based on the information: CNBC

 

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