Cazoo SPAC to be headed up by Dan Och
UK online car seller Cazoo is set to debut on the New York stock market via a special-purpose acquisition company (SPAC), having agreed a merger deal that values the firm at $7bn (£5bn).
In the latest of string of SPAC deals, Cazoo will be merge with Ajax I, headed up by billionaire investor Dan Och.
The news represents a loss for the City and the London Stock Exchange, which was hoping to secure the car seller’s listing, having updated its rules in order to make the capital an attractive proposition to high-growth companies.
The deal will give Cazoo up to $1.6bn of funds to aid its growth and expand its operations. The car retailer employs over 1,800 people across Europe and expects to earn revenue up $1bn in 2021, which would be a 300% increase from the year before.
Och will join the board of the company which was founded in 2018 by its current chief executive Alex Chesterman.
Cazoo buys and inspects cars before they are put up for sale online, while aiming to deliver or collect vehicles in as little as 72 hours.
Alex Chesterman OBE, Founder & 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.”
Dan Och, Founder of AJAX, struck a similarly optimistic tone:
“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.”