Recently listed British unicorn Cazoo has announced that it’s buying leading Italian car retailer brumbrum in a mixed cash and shares deal that values the smaller European business at €80 million.
brumbrum brings a 180 strong team and capacity to refurbish 15,000 vehicles annually, strengthening Cazoo’s position in Europe’s fourth largest used car market.
Jonathan Moyes, Head of Investment Research at Wealth Club said: “Cazoo’s transition from VCT backed private business to New York listed titan left it with a tank full of cash to accelerate growth. The acquisition of brumbrum, coming hard on the tail of launches in France and Germany and the acquisition of a leading Spanish player, shows the group is not hanging about.
This kind of rapid international expansion is exactly what SPAC mergers are supposed to deliver, a cash infusion to spur further growth. With a core UK business that’s going great guns, total revenues rose 267% in Q3, Cazoo will be looking to replicate its success across the Channel.
Cazoo shares have had a turbulent time since listing, although they’re far from alone in the recent tech sell-off. Nonetheless, if Cazoo can maintain its blistering expansion across Europe that should help get the share price back on track for one of the more high-profile names in the UK’s growing herd of Unicorns.”