UK online car seller Cazoo has agreed to float on the stock market in New York in a listing that will value it at around £5 billion (seven billion US dollars).
The company, which was founded just over two years ago by prolific tech entrepreneur Alex Chesterman, will go public through a merger with a blank-check acquisition company led by US investor Dan Och.
The move will more than double the value of Cazoo from a 2.6 billion dollar private funding round in October.
Cazoo offers online sales and delivery of used vehicles in the UK and continental Europe, and so far has delivered more than 20,000 cars.
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The float on the New York Stock Exchange (NYSE) will add £1.3 billion to Mr Chesterman’s wealth by virtue of his roughly 25% stake in the company.
Daily Mail owner DMGT will also significantly benefit from the listing as it owns a roughly 20% stake in Cazoo.
Shares in DMGT jumped by more than 8% in early trading on Monday morning after the float plans were announced.
Cazoo, which now employs 1,800 people globally, said it expects to deliver revenues approaching one billion dollars in 2021 with more than 300% growth in its second full year of trading.
Mr Chesterman said: “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.
“This deal will provide us with almost one billion dollars 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.”
Mr Och said: “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.”
