Online car retailer Cazoo announced today it will acquire Italian rival Brumbrum in a €80m (£66.8m) deal.
Cazoo will acquire Brumbrum in a mix of cash and Cazoo shares, with the transaction expected to be carried out in the next few days.
By acquiring Brumbrum, the UK company will have access to the five most important European markets for used cars –the UK, Germany, Italy, Spain and France.
“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,” said Cazoo’s chief executive Alex Chesterman.
In the UK, the second-hand automotive market has been growing for more than 21 months, with prices skyrocketing as a result, City A.M. reported.
According to Auto Trader’s data and insights director Richard Walker, price increases show no signs of stopping and will continue to ‘defy gravity’ for the foreseeable future.
“To call the second-hand car market buoyant would be an understatement and, with new car supply remaining tight, consumer demand currently shows no sign of wavering,” he said on 19 January.
Used car have also contributed to UK inflation rates rising to the highest in almost 30 years, as last week the industry’s contribution went up to 0.34 percentage points, the highest ever recorded.