Deal targets insurance market
Quindell Portfolio announced it is to buy regional-based personal injury and consumer claim specialist practice Pinto Potts. The deal is still notional, awaiting regulatory approval from both the UK’s Financial Services Authority and England’s Solicitors Regulation Authority.
The move follows Quindell’s announcement at the beginning of the year that it had bought Liverpool personal injury specialist law firm Silverbeck.
According to a statement from the Hampshire technology business – which specialises in software and technology outsourcing programmes – the latest arrangement will focus on providing ‘a joint outsourcing offering to the UK insurance claim market’.
The technology business will initially cough up £1.5 million in cash for the law firm, followed by the same amount of cash in roughly a year – as well as 87.5m in Quindell shares to the firm’s partners. The share deal will involve lock-in clauses ranging from a one to three years.
The overall deal depends on the law firm returning post-tax profits of £2m up to the end of August next year.
Quindell’s chairman and chief executive, Rob Terry, said the deal was designed ‘to grow our revenues in the personal injury space and ... into other areas, including wills and probate ...’
The London-based Law Gazette reported that Alternative Investment Market-listed Quindell’s share price jumped by 3 per cent on announcing the Pinto Potts deal.