British automotive dealer software developer Pinewood Technologies has agreed to a GBP 545 million acquisition offer from US private equity firm Ridgeview Partners. The deal comes after rival bidder Apax withdrew its proposal, citing concerns over the impact of artificial intelligence technology on the software sector.

Under the terms of the agreement, Ridgeview will acquire all of Pinewood's shares at a cash price of 448 pence per share, representing a 43% premium over the company's closing price on July 23. The transaction values Pinewood below the GBP 575 million, or 500 pence per share, offer previously tabled by Apax.

Following Apax's decision to walk away from the acquisition in February, Pinewood's share price experienced a sharp decline, hitting a low of 203 pence in April. Pinewood was originally the software division of automotive dealer group Pendragon, and became an independent entity after Pendragon sold its core car dealership operations to Lithia in 2023.

This acquisition represents the latest in a series of takeovers of London-listed companies by foreign buyers, with easyJet, Segro, and Intertek all having accepted offers from overseas acquirers in recent months. Ridgeview stated its intention to collaborate with Pinewood on increasing investment in technology, particularly in data and AI-driven innovation, while also driving expansion of its software platform into the North American market.

Pinewood Chief Executive Bill Berman noted that fully unlocking the company's business potential requires sustained investment, innovation, and large-scale execution capability. The transaction has secured irrevocable support commitments from investors representing 49% of Pinewood's shares, with completion expected before the end of this year.

The acquisition signals a recovery in merger and acquisition activity within the software industry following the valuation corrections triggered by AI concerns earlier in the year, despite the deal's valuation coming in below previous levels.