On September 18, Pendragon, a British automotive business, announced its plans to sell its UK motor and leasing corporations to Lithia for a total of £250 million ($310 million). Along with this sale, Pendragon will also enter into a strategic partnership with Lithia to expand its dealer management application (DMS) small business into North America. As aspect of the partnership, Pinewood, Pendragon’s DMS small business, will be rolled out to Lithia Motors’ current 50 UK websites. Also, a joint venture will be produced to accelerate Pinewood’s entry into the North American DMS market place.

Pendragon described this transaction as the outcome of its strategic critique initiated final year. The business believes that the sale will create substantial worth for shareholders, with an estimated money dividend of about £240 million. Below the joint venture, Lithia will subscribe to 279.four million new ordinary shares in Pendragon, amounting to £30 million. In spite of these alterations, Pendragon will retain its current listing on the London Stock Exchange and rebrand as Pinewood Technologies Plc.

Note: The Reuters post does not deliver particular specifics about JV.