Pinewood Technologies Agrees £545m Take-Private Deal with Ridgeview
UK-listed automotive software provider Pinewood Technologies has agreed to a £545m ($739m) takeover by US private equity firm Ridgeview, according to Private Equity Wire. The transaction will take the company off the public markets.
Deal Terms
Under the terms of the transaction, Pinewood shareholders will receive £4.48 in cash for each share. This price represents a 43% premium to the company’s closing price on 23 July, before Ridgeview’s proposal was made. The Ridgeview deal remains subject to the customary conditions and approvals required for completion.
Background
The transaction follows an earlier attempt by Apax Partners to acquire the company. Pinewood said in January that it was prepared to recommend a £575.5m offer from Apax if the private equity firm proceeded with a formal bid. Apax subsequently abandoned the proposed transaction, citing challenging market conditions.
Pinewood’s shares, which have risen around 22% since the start of the year, were up 3.6% at 442.5 pence in early trading on Wednesday.
Strategic Rationale
San Francisco-based Ridgeview said taking Pinewood private would provide greater scope for investment in data and artificial intelligence capabilities. The move would also help the business accelerate its expansion across North America and other international markets.
The deal adds to a growing pipeline of UK-listed companies attracting interest from US private equity investors, according to Private Equity Wire. Relatively subdued valuations and the prospect of pursuing longer-term investment strategies away from the pressures of public markets are helping to drive activity.
