UK-based Pinewood Technologies saw its shares fall on Monday following Apax Partners’ decision to abandoned its proposed £575m takeover, citing challenging market conditions amid a broader sell-off in technology stocks linked to AI concerns, according to a report by the Financial Times.
The Birmingham-based company, which is part of the FTSE 250, said last month it was in talks with Apax over a possible £5-a-share cash offer. Its shares dropped by almost a third in early trading on Monday to just under £3.
Pinewood develops software for car dealerships and markets itself as combining AI and data analytics to improve operational efficiency and decision-making. The board said it remained confident in the group’s long-term outlook, supported by high levels of recurring revenue.
Recent market volatility for software followed the launch of a new AI model by Anthropic, which highlighted the potential for automation to replicate core software functions in professional services. In the US, the tech-focused Nasdaq Composite has fallen more than 4% over the past month.
