DMS agency Pinewood to focus on UK and US dealerships after Pendragon acquisition

Seller administration system agency Pinewood can be centered on progress within the UK and USA as soon as mum or dad group Pendragon has offered its motor retail enterprise to US-based Lithia and Driveway.

Pendragon’s board expects that its separation from the dealerships and its transition to inventory market-listed Pinewood Applied sciences plc will “unlock additional scale amongst UK retailers”.

Birmingham-based Pinewood’s DMS is used within the UK principally by Pendragon’s dealerships, and there has lengthy been some reluctance amongst different main UK seller teams to make use of a provider owned by their rival – in 2018 its managing director Neville Briggs stated it was being utilized by round 1,000 dealerships, giving it a 22% market share.

The announcement of plans for a three way partnership with Lithia and Driveway, to enter the North America seller software program market which is estimated to be value greater than £2.6 billion per 12 months, would assist drive up Pinewoods underlying income by double its 2022 stage to a focused £27 million in 2027, reveals the inventory market announcement. 

Whereas Lithia would roll out Pinewood’s software program throughout its present 50 UK dealerships, including 2,500 customers to the prevailing 30,000 consumer buyer base, the software program firm would additionally goal Lithia’s 17,500 customers globally within the medium time period, alongside attracting new third celebration clients.

Invoice Berman, chief government of Pendragon who will grow to be Pinewood Applied sciences CEO as soon as the deal goes by means of, stated: “The launch of Pinewood as a standalone firm is a novel and thrilling alternative to create a best-in-class product for purchasers, which we will market globally and drive substantial worth for our shareholders and in Lithia now we have the proper companion to assist speed up Pinewood’s push into the vastly engaging North American DMS market.”

It’s going to facilitate product co-development with Lithia that can add additional functionality and supply new routes to progress in key present markets.

The DMS is accepted by various carmakers, together with Renault and BMW, and it has integrations with quite a few automotive manufacturers together with Ford and Volkswagen Group.