Litigation specialists, Pinto Potts, have signed an agreement which would allow Quindell Legal Services to acquire them. The acquisition will be subject to Solicitors Regulation Authority and Financial Services Authority approval.
Quindell Portfolio Plc is a provider of sector leading expertise in software, consultancy and technology enabled outsourcing in key markets such as insurance and telecommunications.
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.
Rob Terry, Chairman and Group Chief Executive of Quindell said: "We are delighted to have reached this agreement which represents another key step in the building of our combined insurance outsourcing offering. I would like to welcome both David Pinto and David Potts to the Group where I am sure their industry expertise and experience in the sector will prove to be invaluable as we continue to grow our revenues in the personal injury space, and as we look ahead to 2013 and beyond, into other areas including wills and probate to support our broader service offering for the brands we partner. With the significant volume of business we already have in pilot, the Board have no doubt that this acquisition will be significantly earnings enhancing from completion and will assist with our ability to scale the business to a level of growth beyond our previously stated plans."