ABS news: Quindell adda another law firm to its portfolio
Quindell Portfolio Plc (AIM: QPP.L) a provider of software, consultancy and technology enabled outsourcing in insurance, telecommunications and related sectors, has announced a partnering agreement with Pinto Potts Solicitors (“Pinto Potts”) in providing a joint outsourcing offering to the UK insurance claim market, primarily in the areas of personal injury and also other consumer related services including wills, probate, and conveyancing.
In addition, the two firms have now signed an agreement enabling Quindell Legal Services Limited to acquire Pinto Potts (“the Acquisition”), subject to approval from the Solicitors Regulation Authority and the Financial Services Authority. The consideration for the acquisition will be satisfied by the payment on completion of £1.5 million in cash and a further £1.5 million approximately 12 months from today’s date together with the issue on completion of 87,500,000 Quindell shares, which will be subject to lock in arrangements ranging from 12 to 36 months. In return Pinto Potts has warranted a profit after tax of £2 million and operating cash flow of £1.5 million for the 12 and a half month period ending 31 August 2013.
Pinto Potts are litigation specialists, having particular recognised expertise in high value personal injury claims involving the more complex trauma cases including head, spine and other serious injuries. As part of the partnering agreement, Pinto Potts will work alongside Silverbeck Rymer as part of Quindell Legal Services Limited.
• Quindell has just reported turnover for the nine months ended 30 September 2012 is circa £95.7 million, with Adjusted EBITDA (1) of circa £29 million.