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Lithia & Driveway (NYSE:LAD) companions with Pinewood Applied sciences and can purchase Pendragon’s UK motor and fleet administration divisions, making it the UK’s third-largest automotive dealership group.
The acquisition of Pendragon Car Administration provides a extremely worthwhile fleet administration companies enterprise to Lithia (LAD) and this acquisition will spherical out Lithia’s presence within the UK market.
The money consideration for the strategic partnership with Pinewood Applied sciences and acquisition is ~$350M (£280M).
As a part of the settlement, the continued Pendragon enterprise, comprised of the Pinewood DMS platform, will stay listed on the London Inventory Trade beneath the identify Pinewood Applied sciences and can develop into a pure-play software-as-a-service enterprise with its worthwhile Pinewood supplier administration system.
Publish-completion, Lithia (LAD) would have estimated annualized revenues of over $38B. The acquisition is deliberate to be financed utilizing current on-balance-sheet capability.
Lithia (LAD) will take 16.7% possession within the remaining Pinewood enterprise on the completion of the transaction.
