Summary
Apax has withdrawn its pursuit of Pinewood.AI, citing “challenging market conditions” and stating it does not intend to make an offer at this time. Under UK Takeover Code Rule 2.8, Apax reserves the right to revisit a potential bid within the next six months under specified circumstances. Pinewood reaffirmed confidence in its standalone strategy, highlighting high recurring revenues, OEM partnerships, and its role as a mission-critical technology provider.
Key developments
- Apax: No intention to bid now; retains the option to reengage within six months under Rule 2.8 carve-outs.
- Pinewood response: Emphasizes long-term prospects and its embedded platform serving automotive retailers and OEMs.
- Strategic moves: February 2025 acquisition of Seez (to deepen AI and customer engagement), full ownership of Pinewood North America, and a new contract with Lithia to support U.S. expansion.
Outlook and targets
- Initiatives are expected to contribute about $60 million in annual revenue by end-2028.
- Reaffirmed fiscal 2028 underlying EBITDA guidance of £58 million–£62 million.
Context
The withdrawal aligns with a more cautious dealmaking environment across technology and software, where private equity buyers face higher financing costs and shifting valuations. For automotive retail tech, this removes a near-term M&A catalyst unless conditions change.
Timeline
- January 30, 2026: Talks disclosed that Apax was in discussions to acquire Pinewood.
- February 2026: Apax announces it will not make an offer, citing market conditions.
- 2025 initiatives: WhatsApp lead-management integration (October), dealer-to-trade ordering tools and AI “digital concierge” (mid-year), and FTSE 250 Index inclusion (September).
What to watch
- Any qualifying changes that could allow Apax to return within the six-month window under Rule 2.8.
- Pinewood’s North American scaling, including deployments tied to the Lithia contract.
- Progress integrating Seez and adoption of AI-driven features that support recurring revenue growth.
