Pinewood Technologies’ shares dropped sharply by 28% to 312p in early trading after private equity firm Apax Partners withdrew its takeover offer.
Withdrawal Amid Market Challenges
Apax Partners ended discussions last week, pointing to prevailing challenging market conditions. The firm had proposed a $792 million buyout at 500p per share just two weeks earlier, which initially boosted Pinewood’s shares by nearly 30%. Pinewood was evaluating the offer, with a potential deadline of February 26 for a formal bid.
Pinewood, a provider of cloud-based platforms for car dealerships and manufacturers, expressed strong confidence in its long-term prospects. The company highlighted its position at the forefront of technology innovation, supported by recent strategic moves.
AI Disruption Hits Software Sector
The decision follows turbulence in software stocks, driven by emerging artificial intelligence tools that threaten industry stability. Investors now fear disruption from major AI players like Anthropic and OpenAI.
Dan Coatsworth, head of markets at AJ Bell, noted: “Two years ago, that strategic development would have attracted hoards of investors wanting exposure to all things AI. In 2026, the reverse is true as investors panic about companies being disrupted by the big AI platform providers.”
Pinewood has invested heavily in AI, acquiring Seez last year and gaining full control of Pinewood North America. Despite the share price erasing gains from Apax’s initial interest and falling further, Coatsworth observed: “It’s notable that Pinewood’s share price hasn’t simply given up the share price spike from when Apax first revealed takeover interest. The shares have fallen even further as investors are now worrying why a big-name bidder has suddenly walked away.”
Other software companies, including Relx, Sage, and London Stock Exchange Group, have also seen significant share price declines amid AI-related concerns.
Future Outlook and Guidance
Pinewood reaffirmed its medium-term guidance, projecting underlying EBITDA between £58 million and £62 million for 2028. Apax reserved the right to submit a new offer within six months if a third party bids, the board reopens talks, or circumstances change materially.
