UK-based Cazoo to go Public in New York after Merger with AJAX I

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. [1]

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.”

SEE ALSO: P2P Lending Company Zopa Raises £20 Million Funding from Existing Investors

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


[1] 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:  [accessed March 2021]


Karandeep V

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency. At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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