October 2, 2023 8:46 am
UK motor and leasing companies of Pendragon sold to Lithia for $310 million.

British automotive corporation Pendragon has announced that it will sell its UK motor and leasing companies to Lithia for £250 million ($310 million). In addition to the sale, the two providers have agreed to a strategic partnership that consists of the expansion of Pendragon’s dealer management software program (DMS) company to North America. This partnership will involve Lithia Motors’ current 50 UK websites making use of Pendragon’s Pinewood DMS, as properly as the creation of a joint venture to accelerate Pinewood’s entry into the North American DMS market place.

Pendragon views this transaction as the culmination of a strategic assessment that was announced final year, and expects it to offer an eye-catching money dividend to shareholders of about £240 million. As portion of the agreement, Lithia will also subscribe to 279.four million new ordinary shares in Pendragon for £30 million. The sale and subscription will permit Pendragon to retain its listing on the London Stock Exchange, when altering its name to Pinewood Technologies Plc.

This partnership and sale represents a substantial move for each Pendragon and Lithia, as they seek to expand their presence and capabilities in the automotive market place. Pendragon is confident that this transaction will bring worth to its shareholders, when Lithia sees an chance to leverage Pendragon’s DMS knowledge to improve its operations in the UK and enter the North American market place.

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