US technology-focused private equity firm Ridgeview has made a proposal to acquire UK automotive software provider Pinewood Technologies at a valuation of approximately £545m, according to a report by Reuters.
The indicative offer of 448p per share represents a premium of around 42% to Pinewood’s closing share price of 315p on 24 July.
Pinewood said its board would be minded to recommend the proposal to shareholders if Ridgeview announces a firm intention to make an offer on the same terms.
Ridgeview has until 21 August to announce a firm offer or withdraw from the process.
aThe approach follows an earlier takeover attempt by Apax Partners. Pinewood’s shares surged by as much as 28% in January after the company said it was prepared to recommend a potential £575.5m offer from the private equity firm.
Apax subsequently abandoned its proposal in February, citing difficult market conditions. Pinewood’s shares fell by around 25% following the withdrawal.
Pinewood provides cloud-based software used by automotive manufacturers and dealerships to manage functions including vehicle sales, customer relationships, servicing and accounting.
The company had a market capitalisation of approximately £362.6m at the close of trading on 24 July, before Ridgeview’s latest proposal was announced.
