Lithia Motors, one of the largest automotive retailers in North America, has increased its offer for Pendragon’s UK motor business and leasing business by £117 million, to £367 million.
The total cash consideration is £397 million, including a previously publicly disclosed subscription for shares in Pendragon.
Last month Nottingham-based car retailer Pendragon revealed plans to sell its UK motor business and leasing business to Lithia in a £250 million deal. They also agreed the terms of a strategic partnership, including the rollout of Pinewood, the company’s dealer management software (DMS) business, to Lithia’s existing 50 UK sites and the creation of a joint venture to accelerate Pinewood’s entry into the attractive North American DMS market.
As part of the transaction, it was announced that Pendragon’s Pinewood division, which operates the company’s proprietary DMS business, would become a standalone entity, retaining Pendragon’s existing listing on the London Stock Exchange and creating a pure play Software as a Service (SaaS) business with an accelerated growth plan.
The increased offer follows unsolicited bids for Pendragon from other companies, including shareholder Hedin and PAG International, and AutoNation.
