Pinewood Technologies, a provider of cloud-based software for car dealerships and manufacturers, has agreed to a takeover by US private equity firm Ridgeview Partners for £545 million. The deal will result in Pinewood Technologies delisting from the London Stock Exchange.
Ridgeview Partners will pay £4.48 per share in cash, a 43% premium to Pinewood's share price before the offer was made. The San Francisco-headquartered firm stated its intention to support Pinewood Technologies in its "next phase of growth" as a private company, suggesting that operating away from public markets will offer "greater flexibility and operational focus."
Ian Filby, chair of Pinewood, acknowledged that the company's future growth necessitates increased investment in technology, data, and product innovation. He added that the board "believes it represents the best path forward for both the company and its shareholders" and intends to unanimously recommend the transaction to shareholders.
Pinewood Technologies shares saw a 4.2% increase, reaching 444.9p, contributing to a 26.6% gain for the year. This acquisition follows a trend of foreign private equity firms acquiring UK-listed companies. Most recently, Easyjet was acquired by US private equity firm Apollo for £5.7 billion. Other FTSE 100 companies, including logistics firm Segro, insurer Beazley, and Schroders, have also agreed to take-private deals.
The £545 million deal represents a discount compared to an earlier offer made by private equity giant Apax Partners in February. Apax Partners withdrew its £575.5 million offer, citing challenging market conditions and a subsequent rout in software stocks.