Cazoo is buying this Italian car retailer to expand in Europe

Shares of Cazoo Group Ltd (NYSE: CZOO) jumped nearly 5.0% this morning on news of an acquisition that will expand its footprint in the European used car market.

Cazoo to buy brumbrum in a cash and stock deal

In a press release this morning, Cazoo said it will buy brumbrum for €80 million ($90.24 million) in cash and stock. The leading Italian car retailer is a promising buy, considering its local market expertise, strong management, and capacity to refurbish 15,000 vehicles per year.

The deal with brumbrum will speed up Cazoo’s planned launch across Italy in 2022. In its latest reported quarter, Cazoo noted a massive 267% increase in revenue. The acquisition of brumbrum signals its commitment to future growth, says Jonathan Moyes, head of investment research at Wealth Club.  

Stock performance has been disappointing

On the flip side, Cazoo’s stock performance has been rather disappointing ever since it listed on the NYSE last August. Shares have tanked more than 50% over the past five months. Moyes added:

According to the British online car retailer, the transaction is expected to close in the coming days.