Cazoo founder Alex Chesterman is weighing up a merger with special purpose acquisition company (Spac) that could value it at as much as $8bn.
Chesterman, who set up online car retailer Cazoo in 2018, has been holding discussions with US-listed Spac Ajax I, Sky News first reported.
Ajax I was launched by Daniel Och, co-founder of the hedge fund previously known as Och Ziff Capital Management, and Glenn Fuhrman, a former Goldman Sachs executive.
Sources told Sky News that Ajax I was among a number of possible Spac partners for Cazoo as it pursues plans to go public.
Talks between Chesterman and Ajax I have been ongoing for several weeks, but there is no certainty that negotiations will progress or advance.
Chesterman, a serial entrepreneur and founder of LoveFilm and Zoopla, is reportedly in talks with bankers at Goldman Sachs, Numis, and Credit Suisse over Cazoo’s public listing.
A spokesperson for Cazoo said: “As one of the UK’s fastest growing businesses, with revenues of over £200m since launch, it is not surprising that there is speculation around whether or when we might IPO but we do not comment on speculation and should we have an announcement to make on this or any other matter we shall do so at the appropriate time.”
Ajax I could not be reached for comment.