29 March 2021

Cazoo is finalising a merger with a New York-listed ‘blank cheque’ Spac called Ajax I to take the used car platform public in a £5 billion ($7bn) deal – $1bn below earlier expectations, but still valuing Alex Chesterman’s 30% stake at £1.5bn. The merger could happen today (Monday) suggests Sky News.

The company is also expected to raise around $800m (£580m) through a ‘PIPE’, or ‘private investment in public equity’. This is where shares of publicly traded stock are bought at a price below the current market value. It allows the issuer of the stock to raise capital for the public company.

BCA Marketplace’s Cinch is also reportedly in talks with investors to raise £500m. The fundraising would value the company at more than £5bn (and parent group Constellation, owned by private equity form TDR Capital, at close to £10bn). Cinch already raised £300m from blue-chip investors in 2020.

Cinch says sales have risen by 200% so far in 2021 and that it boasts the biggest supply of cars of any online UK marketplace. The unique annual visitor run rate is already 30 million revealed sources.

Last week, Cinch launched CinchCare, a monthly subscription service including servicing, warranty and premium breakdown cover. It costs £34.99 a month based on 12k miles a year.

The used car market across Europe is worth €400bn (£343bn) in annual sales, according to analysits . Industry data suggests just 1% of sales are currently digital but strong growth is anticipated.

Over the weekend, Vertu’s Robert Forrester revealed the company had sold almost 500 more cars than last year, despite no customer visits. Tom Lyons and the Vertu Volkswagen Hereford team led the daily rankings with 12 deals.

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Tags: Alex Chesterman, BCA Marketplace, Cazoo, Cinch, Robert Forrester, Vertu