Pinewood agrees £545mn takeover by Ridgeview as UK software deals revive

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Pinewood takeover by Ridgeview

Highlights

Pinewood agreed to a £545mn takeover by Ridgeview at 448p per share, representing a 43 percent premium to the July 23 closing price.
Ridgeview committed to major technology investment, focusing on data and AI-driven innovation and expanding Pinewood’s software platform across North America.
The buyout, backed by investors holding 49 percent of Pinewood shares, signals renewed UK software deal activity despite lower valuations and fits a trend of foreign buyers targeting London-listed firms.

Takeover terms and investment plans

As reported by Financial Times, Ridgeview will pay 448p in cash for each Pinewood share, a premium of 43 per cent to the closing price on July 23, the day before its interest became public. The companies say Ridgeview plans a step change in technology investment, particularly in data and AI-driven innovation, while also expanding Pinewood’s software platform across North America.

The agreement values Pinewood below the £575mn, or 500p a share, proposal that Apax withdrew in February. Bill Berman, chief executive of Pinewood, says the business now needs continued investment, innovation and execution at scale to realise its full potential.

The deal has secured irrevocable backing from investors representing 49 per cent of Pinewood’s shares. The buyout is expected to complete by the end of the year.

London listing pressure and software market context

Pinewood, a former Pendragon division, develops software for car dealerships and was separated from the group after Pendragon sold its main car retail business to Lithia in 2023. Its shares fell sharply after Apax walked away, dropping to a low of 203p in April.

The transaction adds to signs of returning activity in the software sector, although at more restrained valuations. Dealmaking had slowed sharply after investors sold software stocks on concerns that new AI technologies could disrupt established business models.

The agreement also fits a broader pattern of foreign buyers targeting London-listed companies in recent months. Recent deals involving groups such as easyJet, Segro and Intertek suggest overseas acquirers still see value in UK-listed assets despite a tougher financing and valuation environment.

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