British automotive firm Pendragon has introduced that it’ll promote its UK motor and leasing companies to Lithia for £250 million ($310 million). Along with the sale, the 2 corporations have agreed to a strategic partnership that features the growth of Pendragon’s seller administration software program (DMS) enterprise to North America. This partnership will contain Lithia Motors’ current 50 UK websites utilizing Pendragon’s Pinewood DMS, in addition to the creation of a three way partnership to speed up Pinewood’s entry into the North American DMS market.
Pendragon views this transaction because the end result of a strategic overview that was introduced final 12 months, and expects it to supply a horny money dividend to shareholders of roughly £240 million. As a part of the settlement, Lithia can even subscribe to 279.4 million new abnormal shares in Pendragon for £30 million. The sale and subscription will permit Pendragon to retain its itemizing on the London Inventory Trade, whereas altering its identify to Pinewood Applied sciences Plc.
This partnership and sale represents a big transfer for each Pendragon and Lithia, as they search to develop their presence and capabilities within the automotive market. Pendragon is assured that this transaction will deliver worth to its shareholders, whereas Lithia sees a chance to leverage Pendragon’s DMS experience to reinforce its operations within the UK and enter the North American market.