Shares in Pinewood Technologies Group PLC have dropped 33% today after a £575 million private equity takeover fell through on Friday.
US-based Apax Partners said it would not progress with a prospective offer of 500 pence per share for the Birmingham-headquartered tech provider to car dealerships.
Apax blamed ‘prevailing challenging market conditions’ as software valuations fall around the world against a backdrop of advancing AI tools which more easily allow companies to develop their own tools.
FTSE 250 firm Pinewood.AI, it is known, was formed out of the breakup of dealer group Pendragon. It is led by Florida-based Bill Berman (pictured).
Its share price leapt last month on news of the potential takeover. Following today’s fall, it is down 17% in the year-to-date.
“The board of Pinewood.AI remains very confident in the positive long-term prospects for the group,” Pinewood stated. “The company occupies a leading position as a mission-critical, full-service, embedded technology provider to automotive retailers and OEMs, benefiting from high recurring revenues and long-standing OEM partnerships.
“This platform positions Pinewood.AI to remain at the forefront of technology innovation and provide best in class technology and secure solutions across its existing and future customers.”
The acquisition of Seez in February 2025 strengthened Pinewood’s AI and customer engagement capabilities. It also signed a new contract with US car dealership group Lithia – its largest shareholder – which is expected to generate approximately $60m of annual revenue by the end of 2028.
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“The board believes the company is well-positioned to continue executing its strategy and to achieve its medium‑term FY28 guidance of underlying EBITDA of £58-62m,” insisted Pinewood.
“Delivering against these objectives will generate significant value for shareholders.”
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