Cazoo, the online used car retailer, has entered into a definitive business combination agreement with AJAX I, a special purpose acquisition company (SPAC), which will result in Cazoo becoming a publicly listed company on the New York Stock Exchange. The deal values Cazoo at $7 billion, making it one of the largest SPAC mergers in history.
Under the terms of the agreement, Cazoo will receive $1.6 billion in gross proceeds, including $805 million from AJAX I’s trust account and a $800 million PIPE (private investment in public equity) at $10 per share. The funds will be used for expansion and operational investments, including the launch of a subscription service for its electric vehicles.
Cazoo was founded in 2018 by entrepreneur Alex Chesterman, who previously founded Zoopla and LoveFilm. The company has rapidly grown to become one of the leading online used car retailers in the UK and Europe, offering a wide selection of high-quality used cars, with a fully-online buying experience and home delivery.
The business combination agreement gives Cazoo a path to expand its footprint across Europe, with plans to launch operations in Germany and France later this year. The company also plans to expand its offering to include new and used electric vehicles, as well as the launch of a subscription service for EVs.
This business combination agreement with AJAX I is a testament to the success and growth potential of Cazoo, as well as the growing market for online used car retail. As the world transitions to a more digital-first economy, businesses like Cazoo are leading the way in revolutionizing the used car market, offering an easy, convenient, and safe way to purchase quality used cars.
As Cazoo continues its expansion, it is positioned to become a major player in the automotive industry and a major disruptor in the digital retail space. This business combination agreement with AJAX I is just the beginning of Cazoo’s journey towards becoming a publicly traded company, and with its ambitious plans for growth and innovation, it is definitely a company to watch in the coming years.
