Cazoo to be listed on New York Stock Exchange

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ritish online car retailer Cazoo is to be listed on the New York Stock Exchange following the signing of a definitive business combination agreement with AJAX – a publicly-traded special purpose acquisition company (SPAC).

Founded by US investor Dan Och, AJAX is a $805m SPAC. Essentially a shell company, SPACs are firms with no commercial operations, formed by investors to raise capital through an initial public offering (IPO), for the purpose of acquiring an existing firm.

The transaction, which is expected to close in the third quarter of 2021, will support Cazoo’s expansion across Europe, utilising the proceeds to expand and develop its brand and infrastructure.

Cazoo owns and reconditions all of its cars before selling them online for either collection or delivery within 72 hours.

Cazoo chief executive, Alex Chesterman, said: “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.”

Seeking to penetrate the $700bn European used car market segment, Cazoo hopes to achieve revenues of $1bn in 2021 and a growth rate of more than 300% in its second full year of operations.

Chesterman continued: “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.”

Praising Chesterman’s business track-record, Och said: “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.”