SYDNEY, March 30 (Reuters) - Australian law firm Slater &Gordon Ltd said on Monday it has agreed to buy a unitof British technology and outsourcing company Quindell Plc for A$1.2 billion ($928.1 million), in a bid topenetrate the highly fragmented UK personal injury market.
Slater & Gordon said it is seeking to raise A$890 million innew equity to fund the acquisition of Quindell's ProfessionalServices Division (PSD).
"The combination of Slater & Gordon and PSD creates thenumber one personal injury law firm in the UK," Slater & GordonManaging Director Andrew Grech said. "It further diversifies oursources of legal work, broadening access to claims managementcompanies, insurers and insurance brokers."
Shares in Quindell have slumped since short-seller GothamCity Research questioned the company's revenue model and profitquality last April.
Quindell, which lists Aviva Insurance Plc, BritishAmerican Tobacco Plc and Royal Mail Plc amongits customers, rejected Gotham City's concerns.
Before the Slater & Gordon deal was announced, Quindell saidthe sale would improve its working capital profile.
The deal is conditional on a majority vote by Quindellshareholders, which is scheduled for April 17. Slater & Gordonsaid Quindell's board has unanimously recommended shareholdersaccept the offer and that it has already secured firmcommitments representing more than 15 percent of Quindell'sissued share capital. ($1 = 1.2930 Australian dollars) (Reporting by Jane Wardell; Editing by Eric Walsh)
