Ridgeview in £545m take-private offer for automotive software company Pinewood; Bridgepoint to acquire asset intelligence biz

Good morning, Nina Lindholm here with the Europe Wire from the London newsroom.

We start the week with a deal type we see a steady stream of in the UK – a take-private bid. This time, the target is Pinewood Technologies, a software provider for car dealerships that Apax Partners was after earlier this year. It’s Ridgeview Partners that has made a non-binding offer now, valuing the company around £545 million ($766 million; €673 million).

Sticking with tech, Bridgepoint has agreed to acquire a majority stake in Lansweeper, an asset intelligence business based in Belgium.

We return to the UK to finish. On Friday, Providence Equity Partners announced it is making a significant investment in SCG, a provider of communications, connectivity and IT services for small and medium-sized businesses.

Driving ahead

Valuing software assets has become more difficult for some time now, as sponsors aim to figure out what the future looks like for them – or if they have one in the first place. While software sell-offs have directed some sponsors to look at industries safe from AI disruption, some GPs are eyeing potential bargains on the stock market.

Ridgeview Partners has offered to take London-listed Pinewood Technologies private with a bid that values it at around £545 million ($766 million; €673 million). Pinewood board considers the valuation “attractive when compared with publicly listed peers,” particularly in the context of recent market volatility around global software companies, according to a statement.

Pinewood’s board said it would be minded to recommend the bid to the company’s shareholders, should Ridgeview make a firm offer.

Ridgeview’s bid – £4.48 in cash per Pinewood share – gives a premium of 43 percent to the company’s share price on July 23 and 63 percent to the volume-weighted average price for the three months.

Apax Partners was after the company earlier this year, but the firm called off its offer in February, citing market conditions.

Ridgeview has until August 21 to make its intentions known regarding an offer.

For Clearlake, FTV, Riverside and Thoma Bravo’s takes on how to invest in software amid AI disruption, take a look at this piece by my colleague Rafael Canton.

Structural growth

Let’s look at another firm betting on tech – this time via a cybersecurity business. Bridgepoint has agreed to acquire a majority stake in Lansweeper, a technology asset intelligence platform headquartered in Ghent, Belgium.

Lansweeper CEO Dave Goossens and the wider management team will remain significant shareholders in the business alongside Bridgepoint. Existing shareholder Dovesco will also retain a minority investment, while Insight Partners and Imker Group will exit as part of the transaction. Insight invested in the company in 2021.

Lansweeper’s data platform uses technology, AI and software to give organizations a complete picture of every connected device across their IT networks. The company helps organizations strengthen cybersecurity, reduce cyber exposure, improve operational resilience and manage increasingly complex digital infrastructures more effectively, according to a press release.

Lansweeper operates in a “large and rapidly expanding” technology asset intelligence market, underpinned by structural demand for cyber resilience, regulatory compliance, hybrid infrastructure, operational technology, AI adoption and the growing need for trusted enterprise asset data, the release added.

“Trusted asset intelligence is becoming an increasingly critical foundation for enterprise technology, AI and cybersecurity,” said David Nicault, partner and sector head for technology at Bridgepoint, in the statement. “As organizations adopt AI and manage ever more complex IT and operational technology environments, accurate asset visibility is more important than ever. We see significant opportunities to build on Lansweeper’s strong platform by expanding its capabilities, accelerating partner-led growth, further investing in innovation and continuing to develop adjacent cybersecurity applications.”

Note: Bridgepoint owns PEI Group, the publisher of PE Hub.

Connectivity demand

Let’s close this tech-focused Wire with one more deal. On Friday, Providence Equity Partners announced it has made a significant investment in SCG, a UK provider of communications, connectivity and IT services for small and medium-sized businesses.

Providence will take a significant majority stake in the business, PE Hub understands.

SCG serves organizations across sectors including healthcare, education, professional services, hospitality and construction, and has grown through both organic expansion and acquisitions. The investment will support SCG’s ongoing acquisition strategy.

Following completion, Daryl Pile will continue as chief executive officer, and founder Paul Bradford will assume the role of president and board member. The management team will also reinvest alongside Providence.

SCG’s proprietary technology platforms include Surgery Connect, used by GP practices, and Evonex, aimed at small businesses and schools.

That’s all from me. Michael Schoeck will cover for MK Flynn later today on the US Wire, and Craig McGlashan will be on Europe duty tomorrow.

Cheers,

Nina