Pinewood Technologies, formerly known as Pendragon, has entered into an advanced subscription agreement with Seez, known for its automotive AI tech, it announced today.
Under the terms of the agreement, Pinewood Technologies, which is listed on the London Stock Exchange, said it had agreed to invest $4.2m (£3.2m) as part of a minority investment round.
The London firm also revealed it had secured exclusive distribution rights for Seez’s AI products in the US, strengthening its entry into the North American market as it prepares for its expansion alongside Lithia Motors.
Bill Berman, chief executive of Pinewood Technologies, said: “This is a unique opportunity for us to further enhance our industry leading SaaS offering in the automotive retail market.
“Seez is an outstanding business that offers sophisticated, AI-powered products to the automotive sector and this investment offers compelling commercial and operational benefits for Pinewood.
“We are looking forward to partnering with Seez and are excited about the future opportunities with their comprehensive AI product suite.”
In April Pinewood Technologies posted its first financial results since its shift from motor dealership to a software company which provides cloud-based management software for car dealerships,
It reported revenue of £24.5m from its software unit in the 13-month period ended January 2024, while its discontinued car business, Pendragon, reported revenue of £4.3bn.
Revenue from its software operations rose from the £19.1m it achieved in 2022, although this was only a 12-month period. Operating profit increased from £7m in 2022 to £10m in the 13 months to January 2024.
In September last year, car dealership group Pendragon agreed to a proposed sale of its UK motor business to US dealer giant Lithia Motors for £250m, sending shares soaring. Shareholders approved the deal the following month.