Pinewood Technologies has agreed to be acquired by US-based private equity firm Ridgeview Partners in a deal valued at £545 million. The transaction is set to result in Pinewood, which provides a cloud-based platform for car dealerships and manufacturers, being delisted from the London stock market.
Ridgeview Partners will acquire each Pinewood share for £4.48 in cash, representing a 43% premium to the company's share price before the offer was made. This acquisition marks a shift for Pinewood Technologies as it moves away from public markets to pursue growth as a private company, a move Ridgeview states will offer greater flexibility and operational focus.
Ian Filby, chairman of Pinewood, commented that the company's next phase of growth requires significant investment in technology, data, and product innovation. The board has evaluated the proposed transaction and believes it is the best course of action for both the company and its shareholders, and intends to unanimously recommend its approval. Shares in Pinewood have seen an increase of 4.2% to 444.9p, contributing to a 26.6% gain over the year.
The deal follows a trend of British firms being acquired by foreign entities. Most recently, Easyjet was the subject of a £5.7 billion takeover by US private equity giant Apollo. Other FTSE 100 companies, including logistics firm Segro, insurer Beazley, and asset manager Schroders, have also agreed to substantial takeovers.
Earlier in February, private equity firm Apax Partners had made an offer of £575.5 million for Pinewood. However, that offer was withdrawn due to