2 years ago
Cazoo is expanding further into Europe by snapping up Italian digital car retailer and subscription platform Brumbrum.
The online used car retailer said it would be paying €80m (circa £67m) for it using cash and Cazoo shares, with the deal set to be completed in the next few days.
Milan-based Brumbrum was established in 2016 and now has more than 180 employees. It also has a 40,000sq m vehicle preparation site in Reggio Emilia that can refurbish more than 15,000 cars a year.
Cazoo, meanwhile, launched in the UK in 2019, and after rapid expansion at home and abroad now boasts a staff headcount of more than 3,800 in the UK, France, Germany, Spain and Portugal.
It floated on the New York Stock Exchange last August at $10 a share, but by last weekend its share price had plummeted to less than half the original value.
Cazoo said the latest transaction would accelerate the launch of its full proposition throughout Italy by the middle of 2022.
Founder and CEO Alex Chesterman said: ‘Brumbrum is the leading online car retailer and car subscription player in Italy and has built a great team, culture and business, and much like Cazoo in the UK it has been pioneering the shift to online car-buying in Italy.
‘We are expanding into key European markets at a faster pace than anticipated and this acquisition will accelerate our launch plans in Italy so that we can deliver better selection, value, quality and convenience to consumers when buying or subscribing to their next car in Italy.
‘I look forward to welcoming the Brumbrum team to Cazoo and working with them to deliver the best car-buying experience to Italian consumers.’
Brumbrum founder and CEO Francesco Banfi said: ‘We have built a very strong team with excellent commercial relationships at Brumbrum and I am very proud of what we have all achieved so far.
‘The combination with the Cazoo platform and brand will significantly enable us to grow the Cazoo service in Italy.
‘Cazoo’s vision and strategy is entirely aligned with ours, and I am looking forward to joining forces and accelerating the launch of Cazoo and the digital transformation of the car-buying, selling and subscription experience across Italy and the rest of Europe.’
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The post Cazoo finalising deal to buy Italian online car retailer and subscription platform Brumbrum for £67m appeared first on Car Dealer Magazine.
