Pinewood Technologies shares sank on Monday after Apax Partners confirmed it does not intend to make an offer for the company, citing challenging market conditions.
Apax had reportedly been lining up a 500p-per-share offer for Pinewood. Pinewood shares sank 29% to 307p on Monday after Apax called off the takeover.
Without actually spelling this out in their statement, US private equity group Apax has probably seen the disruption to the wider software industry caused by AI and has gotten cold feet.
As a provider of software and intelligence to the automotive industry, Pinewood’s dashboard approach to data insights could face competition from AI tools that offer similar insights at a lower cost.
Dan Coatsworth, head of markets at AJ Bell, said: “Pinewood is a technology provider to car retailers and manufacturers and has gone big in AI-related services.
“Two years ago, that strategic development would have attracted hoards of investors wanting exposure to all things AI. In 2026, the reverse is true as investors panic about companies being disrupted by the big AI platform providers including Anthropic and OpenAI.”
Nonetheless, the Pinewood board said it remains confident in the group’s long-term prospects, citing its position as an embedded technology provider to automotive retailers and OEMs, with high recurring revenue.
Pinewood.AI highlighted recent strategic progress, including its February 2025 acquisition of Seez, which bolstered its AI and customer engagement capabilities, and full ownership of Pinewood North America.
Separately, a new contract with Lithia is expected to generate approximately $60 million in annual revenue by the end of 2028, strengthening the company’s position in the North American dealer software market.
The Pinewood board reiterated its medium-term FY28 guidance of underlying EBITDA of £58–62 million.