Lithia & Driveway to acquire UK motor, fleet management divisions of Pendragon

Lithia & Driveway announced that it intends to enter a strategic partnership with Pinewood Technologies and acquire the UK motor and fleet management divisions of Pendragon, the UK’s third largest automotive dealership group. This acquisition will round out Lithia’s presence in the UK market and is expected to generate over $4.5B in annual revenues. Lithia and Pendragon have signed agreements to enter a strategic partnership with Pinewood Technologies and for Lithia to acquire Pendragon’s UK motor division and vehicle management division. As part of the agreement, the ongoing Pendragon business, comprised of the Pinewood DMS platform, will remain listed on the London Stock Exchange under the name Pinewood Technologies and will become pure play software as a service business with its profitable Pinewood dealer management system. Lithia’s UK operations will grow their digital capabilities by adopting the Pinewood technology platform across all locations. Additionally, Lithia and Pinewood Technologies, through a joint venture, will co-develop automotive technology solutions to capitalize on the North American market opportunity. Lastly, Lithia will take a 16.7% ownership in the remaining Pinewood business at completion of the transaction. The acquisition of Pendragon Vehicle Management immediately adds a fleet management services business to Lithia. This business-to-business fleet management model will start the foundation for global growth in this adjacency. PVM’s experienced leadership team will continue leading the business with a focus on growth.