U.K.-based automotive software company Pinewood Technologies Group PLC confirmed Thursday that it is in discussions with private equity giant Apax Partners LLP over a potential acquisition that could value the firm at £583 million ($802 million).
The talks come amid a surge of investor interest in cloud-based platforms for automotive retailers and original equipment manufacturers.
Terms of the Potential Offer
Apax is reportedly prepared to propose a cash offer of 500 pence per share for all of Pinewood’s outstanding stock. The board of Pinewood said it is “minded to recommend” the deal if a formal bid is made, having reviewed the terms with its financial and legal advisers.
Pinewood stressed that no firm offer has yet been made and there is no guarantee that the discussions will result in a completed transaction. Under rule 2.7 of the U.K. City Code on Takeovers and Mergers, Apax has until Feb. 26 to submit a firm offer, though the deadline can be extended with the regulator’s consent.
The potential deal would allow shareholders to receive unlisted partial shares instead of cash if preferred. Apax could also modify the mix or value of consideration, including adjustments triggered by competing proposals or special dividends declared by Pinewood.
