Car retailer Cazoo to list in New York after merger with Spac

British online car retailer Cazoo is the latest company to announce a listing on the New York Stock Exchange by merging with billionaire Dan Och’s special acquisition company Ajax I.

The deal would value the online-based new and used car dealership at $7bn, including debt, the company said in a 29 March statement. The merger will also provide Cazoo, which was founded in 2018, with up to $1.6bn in new funding.

The initial public offering of Cazoo indicates the continued success of online retail as the pandemic and strict lockdowns force shops to shutter up their high street premises.

Credit Suisse International and Goldman Sachs International are acting as lead financial advisers to Cazoo, as well as Numis, with law firm Freshfields Bruckhaus Deringer acting as legal counsel, Cazoo said.

On Ajax I’s side, JP Morgan Securities is acting as financial advisor and Citigroup as capital markets advisor; law firm Kirkland & Ellis is acting as legal counsel to the blank-cheque company.

“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,” said Alex Chesterman, founder and chief executive of Cazoo.

Ajax I’s founder, Och, will join the combined company’s board of directors.

READSpac frenzy fuels record $30bn boom in banker fees: ‘The level of activity is astounding’

There have been 297 Spac initial public offerings so far in 2021, worth $94.4bn, exceeding the record annual total of $83.4bn last year, according to Dealogic data.

To contact the author of this story with feedback or news, email Bérengère Sim

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