Lithia & Driveway announced an agreement for Pinewood.AI to acquire Lithia's 51% interest in their North American joint venture for $76.5 million. The transaction will be satisfied through the issue of 14,560,691 new ordinary shares in Pinewood.AI, valuing the joint venture at $150 million.
This divestiture provides Pinewood.AI with full control of its North American platform, aiming to remove barriers to broader adoption and support expansion in the $6.5 billion automotive retail software sector. For Lithia, it monetizes its stake while maintaining a strategic relationship.
Alongside the acquisition, the companies signed a five-year contract committing to the rollout of the Pinewood Automotive Intelligence™ platform across all Lithia's current and future dealerships in the US and Canada by the end of 2028. Pinewood.AI expects to generate approximately $40 million in annual recurring revenue from Lithia, projected to reach $60 million with additional North America-specific features by the end of 2028. Lithia will remain a committed minority shareholder and a key long-term customer.
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