Cazoo has completed the purchase of Spain’s leading consumer car subscription marketplace in a deal worth €30m, despite recently announcing losses of more than £100m.
The online retailer has completed the buyout of Swipcar, which is based in Barcelona but has also launched in Italy and Portugal.
Bosses at Cazoo say the deal is worth €30m in cash and shares and will have a ‘negligible’ impact on the firm’s finances, despite losses of £102.7 last year.
Founded in 2018, Swipcar has grown to a team of around 100 staff based in Barcelona and offers a wide selection of cars available from various leasing company partners.
Cazoo willlook to tap into Swipcar’s expertise and relationships in southern Europe.
It is hoped the agreement will will ‘accelerate the launch of Cazoo’s full proposition’ into these markets.
The agreement is just the latest in a long line of acquisitions for the controversial firm.
It has also brought the refurbishment of vehicles in-house by acquiring Smart Fleet Solutions for £23.1m plus £15.9m of its freehold property, as well as SMH Fleet Solutions – which also carries out vehicle movements – for some £70m, and bought Cazana for £25m.
In addition, it floated on the New York Stock Exchange following a business combination with special purpose acquisition company Ajax I – the new holding company is based in the Cayman Islands.
Cazoo has also agreed to buy Vans365 for £6.5m, subject to FCA approval.
Despite the jaw-dropping losses, Auto Trader boss Nathan Coe recently told Car Dealer that the platform was ‘here to stay’
Alex Chesterman OBE, founder & CEO of Cazoo, said: ‘Swipcar has built a market-leading car subscription marketplace in Spain adding hundreds of new customers every month.
‘This deal will enable us to accelerate our launch plans in Spain and Italy, offering consumers the option of buying, selling, financing or subscribing to a car entirely online.
‘I look forward to welcoming Julio and his team to Cazoo and to working with them to deliver the best experience to consumers looking for their next car in Europe.’
Julio Ribes, CEO of Swipcar, added: ‘I am very proud of the platform and team we have built at Swipcar.
‘We have developed strong partnerships with thousands of loyal customers and key industry players.
‘Cazoo has a clear vision and strategy that is fully aligned with ours and we are looking forward to joining forces and accelerating the launch of Cazoo and the digital transformation of the car buying, selling and subscription experience in Spain and across Europe.’