British automobile corporation Pendragon has announced it will sell its UK motor and leasing companies to Lithia for £250m ($310m). In addition to the sale, the two providers have also agreed to a strategic partnership that contains the expansion of Pendragon’s Dealer Management Software program (DMS) enterprise into North America. This partnership will consist of Lithia Motors’ current 50 UK places making use of Pendragon’s Pinewood DMS, as effectively as the creation of a joint venture to accelerate Pinewood’s entry into the North American DMS market place.
Pendragon sees the transaction as the culmination of a strategic overview announced final year and expects to present an eye-catching money dividend to shareholders of roughly £240m. As component of the deal, Lithia will also subscribe for 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 important 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 provide worth to its shareholders, when Lithia sees an chance to leverage Pendragon’s DMS experience to develop its UK enterprise and enter the North American market place.