Cazoo Holdings Limited announced that it will be listed on the New York Stock Exchange (NYSE) through a $7 billion merger with AJAX I. As a result of this merger with the special purpose acquisition company (SPAC), Cazoo has also managed to raise funds upward of $1.6 billion.
The arrival of the COVID-19 pandemic has influenced how consumers purchase vehicles. Online platforms such as Cazoo have garnered popularity over the course of 2020 as consumers are expected to practice social distancing.
According to a report by BCG, approximately 8% of consumers across Europe are interested in purchasing a car because of the pandemic. That figure is double in the United States as 16% of consumers are more inclined towards buying a car instead of using public transportation. 
According to Alex Chesterman, Chief Executive, Cazoo, “We think, in markets like ours, that shift is permanent because consumers are discovering new ways to transact which are better.”
More about the merger
Post the merger, the combined company will be named Cazoo and is projected to report revenues of around £1bn in 2021.
Details of the merger indicate that the transactions include:
- $ 800 million fully committed private investment in public equity (PIPE) at $ 10 per share.
- $ 805 million AJAX cash in trust
The combined company will also receive nearly $ 1 billion gross cash proceeds. Cazoo is confident that it will attain a growth rate of more than 300 % in the second year of operations. The merger will fuel Cazoo’s plans to transform the overall car buying experience in Europe.
The funding will be primarily used to improve Cazoo’s brand presence and infrastructure. Cazoo and AJAX’s Board of Directors has given unanimous approval of this merger. The transaction will be completed around the third quarter of 2021.
Goldman Sachs International and Credit Suisse have been appointed as the financial advisors to Cazoo.
Although the car buying market in Europe is very fragmented, Cazoo is in a great position to capitalize on the shift to the online car-buying trend.
According to Dan Och, Founder, AJAX, the company is proud to support the growth of Cazoo as a brand and platform.
More about Cazoo
Founded in 2018, Cazoo aims to transform the car buying experience across Europe. The platform is dedicated to ensuring that purchasing a car online can be as seamless as purchasing any other product.
More about AJAX
AJAX was founded by one of the most popular US investors, Dan Och. AJAX is primarily a black check company whose purpose is to effect a merger, asset acquisition, share purchase, reorganization, or similar business combination with one or more companies.
Image Source: Cazoo
 Lellouche.K, Grover.P, Blue.M, Walus. Szymon, Barrack.T (2020) “Will Consumers Finally Be Able to Buy New Cars Online?” BCG [online] Available from: