RNS For release 7.00 am 15 June 2012
Quindell Portfolio Plc
("Quindell", the "Company")
Commercial Agreement and Acquisition Terms
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 that it has reached an agreement to partner with Intelligent Claims Management Limited ("ICM") one of the largest and fastest growing cloud based claims management networks in the UK. In addition, Quindell has agreed terms for the acquisition of ICM.
The ICM Network is a software based virtual network of independent Claims Management Companies who submit business to ICM's Service Providers (Solicitors, Credit Hire Companies, Medical Agents and many others), which connects everyone involved in the claims process in the same online space, saving time and money. ICM facilitates the network and allows its members to choose with whom they want to work and when. Through its innovative provision of cloud technology, ICM acts as a hub for each of its members, allowing them to exchange work and information in an efficient and controlled manner. The Directors expect that ICM becoming part of the Group will provide a platform for Quindell to engage directly with a wide range of independent claims management companies extending its reach more broadly into the insurance supply chain, driving though service synergies, changing the way in which the industry operates, lowering the cost of claims and improving service for clients.
With the banning of referral fees from April 2013, the integration of the ICM platform and network within the Quindell operation will offer independent claims management companies an alternative business structure through which to continue to transact business in a more controlled and regulated ethical environment, stamping down the cost of claims.
As well as agreeing the framework for a working relationship with ICM, Quindell has agreed the commercial terms that will enable it to acquire ICM, with completion of this acquisition targeted within the next few weeks. The terms of the acquisition, which gives Quindell exclusivity to the end of December 2012, will be satisfied by the issue of 27,083,333 Quindell shares. In return ICM will warrant profit after tax of £0.5 million for the twelve month period ending 31 May 2013 (the "Target Profit") and cash generated to be no less than 100% of the Target Profit (the "Cash Target"). The shares will be subject to lock in of between 12 and 36 months from the date of issue. In the event that ICM misses its Target Profit or Cash Target, the Group will receive compensation from the vendors in the form of cash equal to the greater of 6.5x the shortfall relative to either target. The ICM management accounts for the year ended 31 December 2011 show turnover of circa £1.2 million and profit before tax of circa £0.3 million, which represents a growth of circa 200% on 2010 revenues and the business has continued to grow rapidly to date.
Rob Terry, Chairman and Chief Executive of Quindell said: "As a result of working with ICM over the past months, a number of joint client contracts have been achieved validating our shared vision for the use of technology to facilitate change within the insurance industry to stamp down the cost of claims. The infrastructure, expertise and networks that Karl and his team have built both complement and strengthen Quindell's proposition in the insurance industry. We believe that this acquisition will further enhance Quindell's unique offering to the insurance industry and provide a viable and profitable way forward for smaller independent claims management companies to operate in a regulated environment under an aggregated model."
Commenting on the potential acquisition, Karl O'Hare, Chief Executive of Intelligent Claims Management said: "Quindell offers us a fantastic opportunity to play our part in the changes to the insurance industry that will come into effect from April next year. We see great benefit to combining our technology enabled, cloud based network of claims providers with Quindell's business model, collectively helping to drive down costs for the insurance industry and ensuring the survival of professional claims management organisations post the referral fee ban."
For further information:
Quindell Portfolio Plc
Rob Terry, Chairman & Group Chief Executive
Laurence Moorse, Group Finance Director
Tel: 01329 830 501
Tel: 01329 830 543
Cenkos Securities plc
(Nominated adviser and broker)
Stephen Keys /Adrian Hargrave(Corporate Finance)
Alex Aylen / Andy Roberts (Sales)
Tel: 020 7397 8900
Quindell Portfolio Plc
Gillian Baker, Investor Relations
Tracey Terry, Chief Communications Officer
Tel: 020 7566 6720
Tel: 01329 830 501
Notes to Editors:
About Quindell Portfolio Plc
Quindell Portfolio Plc is a provider of sector leading expertise in Software, Consulting and Technology Enabled Outsourcing in its key markets being Insurance, Telecommunications and their Related Sectors.
Quindell joined the market through Mission Capital Plc, now renamed Quindell Portfolio Plc. The Company was readmitted to the market on 17 May 2011 following the acquisition of Quindell Limited prior to the immediate acquisition of Quindell's technology and outsourcing partners. In December 2011, Mobile Doctors Group Plc was acquired increasing 2012 run-rate revenue to over £50 million. On the 1 April 2012, Ai Claims Solutions Plc became a subsidiary of Quindell, increasing run rate revenue to over £150 million.
Our Industry Sectors
In today's digital world the line between traditional industry sectors continues to blur, however the focus on tight service management is common to them all. We believe that excellent customer service, tight cost control and integrated supply chain management is not the prerogative of any single industry sector and with our solutions in multiple industry sectors savings of over 20% against industry norms are being delivered to the bottom line.
The pressures on an organisation can come simultaneously from multiple directions including the need to add customers, increase wallet share, reduce costs and improve customer satisfaction. At Quindell we have the People, the Processes and the Supply Chains, underpinned by our sophisticated Champion and Challenger Business Process Management Technology Platform and Industry Solutions to help our customers tackle these efficiently and effectively.
With a clear understanding that having the best products and services on offer is not always enough and that getting your customers to use or adopt them is key, effective conversion lies at the core of our unique Champion and Challenger tools and techniques. Using these solutions Quindell has helped its customers achieve sales and service conversion rates ranging from 75% to 90%, way above industry norms. But life does not stand still, and complacency can kill any business, so the embedded Champion and Challenger continual improvement focus of our Learning Solutions is at the heart of all we offer. Using our industry insight and expertise, Quindell takes the holistic view of our client's challenges.
For example, when considering the Insurance industry today where 50% of the cost of an auto claim is associated with Personal Injury, including legal services, medical reporting and rehabilitation, it is clear that an organisation will not be able to achieve the levels of savings and customer satisfaction desired without addressing the injury to the driver as well as the repair of the vehicle. This is why at Quindell we have designed our insurance solutions and supply chains to address the full end to end cycle, with the ability and expertise to treat an injured party as well as repairing their vehicle. This makes Quindell a truly unique and ethically based proposition for the insurance industry today.
Quindell Portfolio's companies have worked with over 2000 brands from Small to Medium Enterprises and Blue-chip organisations around the globe. Today we count a number of the world's top Insurance and Telecommunications blue chip companies within our client base, as well as hundreds of customer centric organisations working in both the distribution and supply of their services.
Our award winning Business Transformational, Software, Consulting and Outsourcing Solutions are recognised as delivering significant savings and additional sales to our customers every year.
For further information, please visit www.quindell.com