Saturday, 3 January 2009

Pendragon pulls Pinnacle sale process

(By Richard Holway) When I wrote about car retailer Pendragon putting its software division – Pinnacle – up for sale in November (see Pinnacle for sale) I said that its suggested 3xrevenues or £60m valuation would look “rich even in normal times”.

I now understand that the sale process has been aborted as, surprise, surprise, no buyer can be found at that exalted price. See Sunday Times 28th Dec 08 Car retailer Pendragon halts software sale.

Pendragon’s share price has slumped 95%+ this year. It needs to raise cash. Given the perilous state of the car retailing market right now, software companies servicing that marketplace must be equally badly hit.

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