British online used car marketplace Cazoo has acquired automotive data insights platform Cazana for around £25m ($34.4m) in cash.
Based in London, Cazana owns comprehensive vehicle pricing datasets and has more than 50 staff, including data scientists and engineers.
Cazana has developed a dataset of more than 500 million historic vehicle transactions from more than 40 countries, including the UK, Germany, France, Spain and Italy.
The transaction does not include Car and Classic, a subsidiary of Cazana.
The acquisition is expected to render an ‘immaterial’ impact on Cazoo’s operating results for this year.
The deal is expected to enhance Cazoo’s data team and capabilities and optimise its car buying and pricing across the UK and Europe.
It follows the company’s recent $1bn business merger with publicly traded special purpose acquisition company Ajax I (AJAX).
Cazoo founder and CEO Alex Chesterman OBE said: “Cazana has built one of the leading data insight platforms, providing tools that are used by manufacturers, lenders, fleet owners and insurers in the automotive space.
“This acquisition will enhance our data team and capabilities and enable us to further optimise our buying and pricing of vehicles across the UK and Europe.
“I am looking forward to welcoming the Cazana team to Cazoo as we continue our mission to deliver the best car buying and selling experience to consumers across Europe.”
Cazana CEO Tom Wood said: “Cazoo has a clear vision and strategy to provide the best full stack car buying and selling experience across Europe and by joining forces, the Cazana team, data and products will continue to play a key part in accelerating the digital transformation of the industry.
“Chris [Varin, chief operating officer] and I are excited to be continuing our journey leading Car and Classic whilst supporting the integration of the Cazana business with Cazoo over the coming months.”
Cazoo was launched in 2018 and has so far sold more than 35,000 cars in the UK.