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.
US private equity group Apax has probably seen what’s happening to the wider software industry amid fears of AI disruption 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.
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, stating that delivery against these objectives will generate significant shareholder value.