Slater & Gordon strikes £637m Quindell deal
SLATER & Gordon, the Australian group which has acquired several well known North West law firms over the past few years including Pannone, Fentons and Russell Jones & Walker, has pulled off its biggest deal yet.
After months of speculation it has announced a deal to acquire the professional services division from struggling listed insurance outsourcing and technology company Quindell for £637m.
Assets to be sold by Hampshire-based Quindell include several North West businesses including Silverbeck Rymer of Liverpool and AI Claims in Blackpool.
Quindell’s professional services division provides legal, claims management, health and medical reporting services. During the financial year ended 31 December 2013, the profits before tax generated by the unit contributed in aggregate £82.5m to its parent. In the six months to June 30 2014 its profits were around £113.4m.
Slater & Gordon, which generated nearly half its £218m revenues in the UK last year, is to fund the purchase with an A$890m equity raising.
At its height, Quindell had a market value of more than £2.7bn, which had fallen to £205m in January. It was worth £608.5m when markets closed on Friday.
Andrew Grech, managing director of Slater and Gordon said: “We are delighted to be acquiring Quindell’s professional services division. In getting to this point we undertook a very extensive due diligence process.
“The business we are buying is of high quality with robust infrastructure and systems and good people. This move will accelerate and consolidate our position in the UK market and bring benefits to the clients and staff of both businesses.”
Quindell’s chief executive Robert Fielding added: “We are pleased that Slater and Gordon has recognised the strength of our business and quality of our people and the team will continue to look after all our customers to the same high standards that we always have both before and after completion of the transaction.”
The two companies had been in exclusive talks since January. Quindell’s shareholders, who are in line to share some £500m, will need to approve the deal at a meeting on April 17.
