UK-listed automotive software provider Pinewood Technologies is set to leave the public markets after agreeing to a £545m ($739m) takeover by US private equity firm Ridgeview, according to a report by Reuters.
Under the terms of the transaction, Pinewood shareholders will receive £4.48 in cash for each share, representing a 43% premium to the company’s closing price on 23 July, before Ridgeview’s proposal was made.
The deal adds to a growing pipeline of UK-listed companies attracting interest from US private equity investors, with relatively subdued valuations and the prospect of pursuing longer-term investment strategies away from the pressures of public markets helping to drive activity.
San Francisco-based Ridgeview said taking Pinewood private would provide greater scope for investment in data and artificial intelligence capabilities, while helping the business accelerate its expansion across North America and other international markets.
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.
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.
The Ridgeview deal remains subject to the customary conditions and approvals required for completion.
