In a general meeting, the shareholders of car retailer Pendragon have voted in favour of Lithia’s bid for the company’s UK motor and leasing business.
Backed by 98% of shareholders, the offer by Lithia UK Holding Limited, a subsidiary of Lithia Motors, was revealed last month and was followed by a number of alternative bids from firms including Hedin and PAG International and AutoNation, who ultimately backed out of the acquisition race.
Lithia Motors, one of the largest automotive retailers in North America, had increased its offer for Pendragon’s UK motor business and leasing business to £367 million. The total cash consideration is £397 million, including a previously publicly disclosed subscription for shares in Pendragon.
Pendragon and Lithia 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.
