Shares in automotive software provider Pinewood Technologies (PINE) plunged 30% to 305.5p after Apax Partners withdrew its £575.5m takeover offer. In a statement on 13 February, the private equity giant blamed ‘prevailing challenging market conditions’ for its decision to walk away.
| Share price: 305.5p (-30%) | PE: 54.6x |
| Market cap: £502m | Yield: n/a |
In response, Pinewood expressed confidence in its long-term prospects. The FTSE 250 firm highlighted its scope for growth in the North American automotive dealer software market.
Trading as Pinewood.AI, the company offers a cloud-based automotive intelligence platform to car dealerships.
Last month, it emerged Pinewood was in talks with Apax over a possible cash offer at 500p. At the time, the board said it ‘would be minded’ to recommend this bid to shareholders.
A takeover would have seen Pinewood disappear from the London stock exchange less than two years after a spin-out from automotive retailer Pendragon.
Motoring ahead
Pinewood remains ‘very confident’ in its ‘positive long-term prospects’. The firm also highlighted its leading position as a ‘mission-critical, full-service, embedded technology provider’ to automotive retailers and OEMs.
Management’s confidence is underpinned by recent strategic moves including the acquisition of Seez, which strengthened Pinewood’s AI capabilities. And a new contract with Lithia (LAD), one of North America’s biggest car retailers. This is expected to generate approximately $60m of annual revenue by the end of 2028.
On the road to growth
These ‘significant milestones’ put Pinewood in a strong position to grow its share of the North American automotive dealer software market.
The company also reiterated its medium‑term FY28 guidance of underlying EBITDA in the £58m to £62m range.
Short-term shareholders will be disappointed by the collapse of bid talks. But this means the London market will retain one of its few world-leading tech companies. For now at least.
Apax reserved the right to return with an offer within six months if a third party bids, the board agrees to restart talks or there is some other material change in circumstances.
Long-term investors will be counting on Pinewood to capitalise on its ties with OEMs and AI capabilities and drive strong growth in North America. Revenue grew 21.7% to £19.6m in H1 to June 2025 and underlying pre-tax profit revved up 10% to £4.4m.
Read the press release here: https://pinewood.ai/investors/results/
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