U.S. tech private equity firm Ridgeview offered to buy Britain’s Pinewood Technologies for 448 pence per share, valuing the automotive service provider at £545 million (or approximately $726.10 million), according to Reuters. The offer represents a premium of about 42 percent to Pinewood’s closing price of 315 pence on Friday, when the announcement was made, and comes as private equity interest in the company continues even after an earlier bid fell through.
Pinewood Technologies said it would be inclined to recommend a bid to shareholders if Ridgeview announces a firm intention to make an offer, with Ridgeview required to make a firm bid by August 21. Should the deal move forward, it would mark the resolution of a takeover saga that has played out for the company over the past several months. In January, Pinewood’s shares surged as much as 28 percent after it said it was set to agree a £575.5 million deal with Apax Partners if that firm tabled a formal offer, a valuation notably higher than Ridgeview’s current proposal. However, Apax withdrew the following month, citing challenging market conditions, sending Pinewood’s shares down 25 percent to 325 pence and leaving the company’s stock trading well below its earlier takeover valuation in the months since.
Pinewood Technologies provides a cloud-based platform helping car dealerships and manufacturers manage vehicle sales, customer relationships, repairs, and accounting, giving it a foothold in the growing market for software-driven automotive retail management tools. The company had a market valuation of £362.56 million as of Friday’s close, meaning Ridgeview’s offer represents a substantial premium not only to the company’s recent trading price but also to its broader market capitalization heading into the announcement.
