Pinewood to acquire South Africa business for GBP2.5 million

(Alliance News) - Pinewood Technologies Group PLC on Monday said it has agreed to acquire software-as-a-service business Pinewood Dealer Management System for a total of GBP2.5 million.

The Birmingham-based provider of software to the automotive retailing sector said the deal was made via its wholly-owned South African subsidiary, and that it bought the business from entities within the Motify Group.

It expects the takeover to complete on August 1, and said the deal will deliver "immediate commercial benefits".

The acquisition is anticipated to add around GBP500,000 to GBP700,000 in incremental annual earnings before interest, tax, depreciation and amortisation.

Pinewood Technologies said the takeover would enable it to "fully control" its sales and customer service functions in the South African market. Upon completion, it will take on all of the business' customer contracts in the region, including the transfer of an unspecified number of employees.

Since 2009, the business has expanded Pinewood Technologies' system footprint across South Africa, Zimbabwe, Zambia, Botswana, Eswatini, Namibia and Mauritius, establishing around 300 dealer partnerships and more than 30 original equipment manufacturer partnerships.

"We are thrilled to be bringing PWSA fully into the Pinewood.AI Group," said Pinewood Technologies Chief Executive Officer Bill Berman.

"This acquisition is consistent with our strategy to expand our global operations, and it will enhance our Go-to-Market capabilities and deepen our customer relationships in an important growth market.

"Our customer base in Southern Africa has grown across multiple franchise partners in recent years and this move reflects our confidence that we can drive further growth in the region in the years ahead."

Shares in Pinewood Technologies were up 3.1% at 471.00 pence in London on Monday afternoon. The stock has risen 40% over the past year.

By Emily Parsons, Alliance News reporter

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