Quindell Portfolio Plc (AIM: QPP.L), the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being insurance, telecommunications and their related sectors is pleased to announce the acquisition of Quindell Property Services Limited ("QPS"), a newly formed group providing disruptive outsourcing and technology solutions to the property insurance market place.

  • Acquisition and controlling stake in innovative SaaS based claims outsourcer for shares at a premium
  • Fast tracks Quindell's expansion into global property insurance claims market
  • Earnings neutral in the current year and significantly earnings enhancing for 2014
  • Potential for £10 million profit before tax from property services in 2014
  • Proven strategy to save up to 30% on property claims and global pipeline of opportunities identified

Quindell Property Services is a newly formed group bringing together a number of businesses owned by the vendors, related to the supply of outsourced property services and SaaS based enabling technologies. This transaction will enable Quindell to increase its shareholding in 360GlobalNet Limited ("360") from 19% to 60% as well as acquiring associated companies. The vendors have agreed to a significant element of their consideration being tied to achieving £10 million profit before tax in each of 2014 and 2015 from the provision of property services.

360 is an innovative technology and consultancy company founded by Paul Stanley, with specialisms in the business use of video and rapid data-mining of all data formats with particular emphasis on fraud prevention, compliance monitoring and managed crowd sourcing within the insurance sector. 360 has already conducted a pilot program with a major Listed insurer to address key elements of its property claims strategy and this project has now reached a critical stage validating the opportunity to save up to 30% of the cost of property claims with a proven disruptive technology enabled strategy to change the dynamics of property supply chain and with a global pipeline of opportunities identified. Quindell was a founding investor in 360 and in April 2012, following its first £30 million fundraise, one of its key use of proceeds was to increase its ownership in 360 from 3% to 19% for a total consideration of £2.15 million.

Paul has significant experience in the insurance industry and is a member of Quindell's Strategy and Integration Advisory Board, previously working with groups including Royal Insurance and Direct Line where he won Post Magazine's claims manager of the year. Paul is a serial founder of successful companies specialising in outsourcing, data technology, perils modelling and geographic information systems. The sale of his previous companies, Infront Solutions Limited, Addressology Limited and Conversant Data Limited, were negotiated by current members of Quindell's management team. These transactions typically followed the taking of an initial minority. Infront Solutions Limited was awarded in 2012 the contract to handle all of Royal Bank of Scotland Insurance's newly notified subsidence claims, estimated to contribute approximately £40 million to its revenue over its three-and-a-half year life and in 2007 won a five year contract to service Royal and Sun Alliance's subsidence claims worth over £30m.

The services provided by QPS will enable Quindell to accelerate the development of new products and propositions in the property claims sector, with the opportunity to build on QPS's capabilities using Quindell's existing insurance and affiliate clients, help clients to create further differentiation in product offering, improve customer retention and drive down the cost of property claims by up to 30%.

Rob Terry, Chairman and Group Chief Executive of Quindell said: "Having worked with Paul as a client, an advisor and then as a colleague in my previous company, his track record in developing disruptive strategies to drive down the cost of claims is well proven. Quindell welcomes Paul back to what we feel is his natural home as part of a team of innovative industry consultants dedicated to delivering improvements in profitability for the insurance market with disruptive business transformation strategies. Having been involved in the development of our combined property claims strategy for over five years we are pleased to be able to now validate our long term investment strategy and to be able to start capitalising on this solution for the industry."

Paul Stanley, Chairman and Chief Executive of 360GlobalNet said: "I am delighted to be announcing this important development in our respective Group's relationship. As previously stated in 2012, 360GlobalNet's technology has the capability to change industry practice. Quindell's ability to demonstrate thought leadership within the insurance industry is similarly impressive as clearly demonstrated by their recent acquisition program and major contract wins which put them in a unique and enviable position to bid for outsourcing work in an industry that is undergoing significant change. As a result, our fit with Quindell's existing software, consulting and technology enabled business process outsourcing services is extremely compelling."

The terms of the acquisition have been satisfied by the immediate issue of 65,978,572 Quindell shares representing approximately 1.6% of the Group's issued share capital, and further issues of up to 21,111,111 shares issued contingent on the business achieving £2m of profit for 2013. Subject to the property business achieving a minimum of £10 million profit before tax and operating cash flow in each of two respective warranted profit years to 30 September 2015 a further 84,444,444 and 84,444,445 shares are also contingently issuable. The acquisition is therefore expected to be significantly earnings enhancing as from 2014.

Based on the agreed initial valuation of £11.5 million, the transaction gives an implied value of 17.5p per Quindell share. The shares are subject to lock in of between 12 and 36 months from the date of issue.

Application has been made for the 65,978,572 new shares to be admitted to trading on AIM. Admission of the shares is expected to occur on 10 May 2013. Following Admission Quindell will have 4,066,854,482 ordinary shares in issue and up to 340,271,427 shares to be issued in respect of deferred consideration on acquisitions over the next three years. The Company has no ordinary shares held in treasury. The total of 4,066,854,482 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

For further information:

Quindell Portfolio Plc
Rob Terry, Chairman & Group Chief Executive Tel: 01489 864 201
terryr@quindell.comThis email address is being protected from spambots. You need JavaScript enabled to view it.

Laurence Moorse, Group Finance Director Tel: 01489 864 205
moorsel@quindell.comThis email address is being protected from spambots. You need JavaScript enabled to view it.

Cenkos Securities plc
Nominated Adviser and Broker Tel: 020 7397 8900
Stephen Keys / Adrian Hargrave (Corporate Finance)
Alex Aylen / Andy Roberts (Sales)

Media Enquiries
Redleaf Polhill Limited
Rebecca Sanders-Hewett Tel: 020 7382 4730
Jenny Bahrquindell@redleafpolhill.com

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