Pinewood Technologies Group PLC has agreed a £545 million sale to San Francisco private equity firm Ridgeview Partners.
The FTSE 250 firm is a Birmingham-headquartered tech provider to car dealerships and was formed out of the breakup of dealer group Pendragon. It is led by Florida-based Bill Berman (pictured).
In February shares in Pinewood Technologies Group PLC nosedived from around £4.50 to below £3 after a £575m takeover by another US-based PE house Apax Partners fell through. By April it was hovering just above the £2 mark, although it has since recovered some of that value.
Apax blamed ‘prevailing challenging market conditions’ as software valuations fell around the world against a backdrop of advancing AI tools which more easily allow companies to develop their own tools.
The non-binding Ridgeview offer is for £4.48 in cash per Pinewood.AI share.
“The board of directors of Pinewood.AI has indicated… that it would be minded to recommend that Pinewood.AI shareholders vote in favour of the possible cash offer,” Pinewood stated late on Friday afternoon.
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The offer represents a premium of 43% to Pinewood.AI’s share price of 314 pence at the close of business on Thursday.
Shareholders will be offered a share-based alternative in the resultant non-listed entity.
Pinewood said it has already secured 48.71% of support for the deal from its shareholder base.
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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