Quindell Share News (QPP)

Specialist UK insurance outsourcer Quindell on Monday announce it is selling its professional services unit to Australian law-firm, Slater & Gordon in a deal worth £700m.Quindell's professional services arm is the largest personal injury legal claims business in the UK and accounts for around 90% of the group's business, indicating that the company is disposing most if not nearly all of its overall business.Slater & Gordon, which generated nearly half its £218m revenues in the UK last year, will fund the purchase with an A$890m equity raising managed by Citigroup and Macquarie Capital.The deal is conditional on a majority vote by Quindell shareholders, which is scheduled for 17 April. Slater & Gordon said Quindell's board has unanimously recommended shareholders accept the offer and that it has already secured firm commitments representing more than 15% of Quindell's issued share capital.Slater & Gordon managing director Andrew Grech said the deal "further diversifies our sources of legal work, broadening access to claims management companies, insurers and insurance brokers."For Quindell, the deal ends a difficult year for the group since the New York-based short-seller Gotham City Research questioned Quindell's financial health last April. Quindell has also suffered from the sudden departure of its founder Rob Terry following a share-dealing scandal.David Currie, interim non-executive chairman of Quindell said this deal is a landmark for the company, delivering significant value for investors. "We are confident that this transaction, our clear strategy and the actions we are taking will enable us to move forward with renewed purpose," he said.