US private equity firm agrees possible £545m takeover of Pinewood.AI

US private equity firm Ridgeview Partners has agreed a possible takeover offer for Birmingham-based automotive software company Pinewood.AI, valuing the business at approximately £545m.

The proposed offer has been made by U.K. Piston Bidco, a newly formed company indirectly owned by entities administered by Ridgeview Partners. It values Pinewood.AI at £4.48 per share in cash, representing a 43% premium to the company’s closing share price on 23 July.

Pinewood.AI’s board has indicated it would be minded to recommend the offer should Ridgeview announce a firm intention to proceed with the acquisition under the Takeover Code. The bidder has until 21 August to either make a formal offer or withdraw its interest.

Pinewood.AI develops cloud-based software used by automotive retailers to manage dealership operations, including vehicle sales, aftersales, customer management, accounting, inventory and reporting. The platform is used by dealer groups and manufacturers in multiple international markets to digitise and automate retail operations.

Ian Filby, chairman of Pinewood.AI, said: “Since becoming an independent software business in 2024, Pinewood.AI has delivered significant strategic and operational progress, strengthening its position as a leading global automotive technology platform.

“While the board remains confident in the company’s long-term prospects, we recognise that the next phase of Pinewood.AI’s growth will require continued investment, innovation and execution at scale. Against that backdrop, the board believes it is right to engage constructively with Ridgeview Partners, who bring deep technology expertise, long-term capital and a shared ambition for the business.

“Having carefully considered the proposal received, the board has indicated that it would be minded to recommend an offer on these terms, should a firm intention to make an offer be announced.”

Letters of intent supporting the proposed transaction have been received from shareholders including Lithia UK, Working Capital Partners, Feoh Investments UK LLP, Newtyn Partners and Hosking Partners LLP. Together they represent approximately 48.71% of Pinewood.AI’s issued share capital.

The Birmingham-headquartered company reported revenue of £40.5m for the year ended 31 December 2025, compared with £31.2m the previous year. Underlying pre-tax profit increased from £8.5m to £8.8m.

Chief executive Bill Berman said the company’s second year as a standalone technology company “delivered both strong financial performance and significant strategic progress”.

Earlier this year, Pinewood.AI completed the integration of Dubai-based automotive AI company Seez, strengthening its artificial intelligence capabilities for vehicle retailers following the acquisition announced in 2024.

Jefferies International is acting as financial adviser and corporate broker to Pinewood.AI, while Ridgeview is being advised by RBC.

Image source: Pinewood.AI