UK software group Pinewood Technologies has agreed a £545mn takeover by US private‑equity firm Ridgeview Partners, months after rival buy‑out group Apax withdrew its offer amid fears of AI’s impact on software companies.

Ridgeview will pay 448p in cash for each Pinewood share, a premium of 43 per cent over the closing share price on July 23, the day before the firm made its interest public.

The deal values the Birmingham‑based company that develops software for car dealerships at less than Apax’s £575mn or 500p per share, an offer made earlier this year. Pinewood’s shares fell sharply after Apax withdrew, hitting a low of 203p in April.

The agreement signals life in the software market, albeit at lower valuations, after a sell‑off triggered by new AI technologies. Adjustments include a “step change in technology investment—particularly in data and AI‑driven innovation” and expansion across North America, with CEO Bill Berman noting that continued investment, innovation and execution at scale are required. The buyout is expected to complete by year‑end.