Pendragon Pinewood court hearings underway

19 July 2023

Hearings for the High Court legal challenge to Pendragon software business Pinewood have begun. Justice Joanna Smith took application hearings last Wednesday and Thursday.

Pinewood Technologies Asia Pacific Ltd, a Hong Kong-based software reseller, is suing Pinewood Technologies PLC for $313m (£239m) for allegedly failing to change the DMS to fit the legal requirements of different markets. It claims this blocked it from launching in Japan.

Pinewood Technologies PLC has filed a counterclaim, alleging the reseller breached its contract by failing to pay outstanding debts.

Pinewood Technologies Asia Pacific Ltd is represented by King & Spalding; Pinewood Technologies PLC is represented by Towers & Hamlins.

In its 2022 results, Pendragon revealed Pinewood revenue grew 4.1% to £25.4m, but operating profit fell 12% to £11m due to increased R&D which included a “largest ever” £6m capex spend.

Pendragon believes the UK DMS market is worth £100m, and the global DMS market is worth £2.5bn.

In December 2022, Hedin abandoned a £400m takeover bid for Pendragon.

https://tinyurl.com/ymn74uf6

Tags: Pendragon, Pinewood

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