Pendragon, a U.K. motor dealership, has announced its plans to sell its complete motor business enterprise and leasing business enterprise to Lithia Motors for £250 million ($309.six million). As component of this deal, Pendragon will modify its name to Pinewood Technologies PLC and enter into a strategic partnership with Lithia. The company’s Pinewood division, which operates its personal dealer management computer software business enterprise, will grow to be a standalone entity and concentrate solely on computer software-as-a-service.

In addition, Pendragon and Lithia have agreed on the terms of their strategic partnership. This involves the rollout of the Pinewood business enterprise to Lithia’s current 50 U.K. websites and the creation of a joint venture to expedite Pinewood’s entry into the North American dealer management computer software industry. To assistance this partnership, Lithia will subscribe to 279.four million new ordinary shares in Pendragon for £30 million.

The transaction is anticipated to present a money dividend to shareholders of roughly £240 million. This will consist of a money dividend of 16.five pence per share, a retained 83.three% ownership in the continuing business enterprise (initially valued at about ten.three pence per share), and a direct interest in the North American joint venture (initially valued at about .six pence per share).

All round, this strategic move by Pendragon aims to streamline its operations and concentrate on its computer software business enterprise, though also benefiting from the partnership with Lithia.