WTG.L Regulatory News (WTG)

RNS Not for Release until 7.00 am 10 October 2012

Quindell Portfolio Plc

("Quindell", the "Group", and the "Company")

Acquisition of Metaskil

·; Further strengthens relationships with blue-chip clients, e.g. insurethebox, Aon, BT and Vodafone

·; Visibility of technology revenues through SaaS revenue streams

·; Strong strategic components added into Quindell's Integrated Component Environment framework

·; Acquisition significantly earnings enhancing in 2013

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 Metaskil Group Limited ("Metaskil"), a specialist provider of solutions to the insurance and telecoms industry.

Metaskil are the developers of a number of technology components, collectively known as Open Square, which includes an advanced function rating engine "Napier", that is currently in operation within the largest telematics insurer in the UK, also a key charter client for Quindell. It offers a variety of services from development,based on their Open Square component set, to the provision of key project resources. Metaskil has developed its component set with the capability and flexibility to support the underwriting needed for the next generation of personal lines insurance products. Napier is already underpinning the sophisticated underwriting demands of the largest telematics insurer in the UK and was personally selected and championed by a recognised leader in the field of telematics rating.

The flexibility and functionality provided by Napier will allow Quindell to accelerate the development of new products and propositions with its insurance and affiliate clients, helping them to enhance their speed to market; create further differentiation in product offering and improve customer retention.

Metaskil and Quindell already have a number of clients in common. Metaskil's key blue-chip clients include; BT, FSA, Vodafone, Royal Mail, Thames Water, Aon and insurethebox.

Quindell is already working with both the products and developers from Metaskil in a number of pilot projects and has established a significant pipeline of joint opportunities within the top tier personal lines insurers in the UK, with the first proof of concept being commissioned by a top 5 insurer within the past week.

By leveraging its scale Quindell will assist Metaskil to grow its transactional revenues, through Software as a Service ("SaaS") contracts generally based on policy or quotation counts, delivering both greater visibility and sustainability within its technology revenues.

The terms of the acquisition have been satisfied by the issue today of 40,000,000 Quindell shares. In return Metaskil has warranted profit before tax of circa £632,000 for the twelve month period ending 30 September 2013 and cash generated during the period to be no less than £316,000. The shares will be subject to lock in of between 12 and 36 months from the date of issue. Metaskil's run rate revenues for the twelve month period to 30 September 2012, according to management accounts, are circa £3 million, with a significant proportion of revenue recurring in nature.

The acquisition of Metaskil is expected to be slightly Earnings Per Share ("EPS") enhancing in the remaining period to December 2012, however the Board believes it to be significantly EPS enhancing during 2013.

Rob Terry, Chairman and Group Chief Executive of Quindell said: "I am pleased to announce Quindell's acquisition of Metaskil. We are already working with Metaskil in a number of strategic accounts, including the largest telematics insurer in the UK as well as a number of other blue-chip organisations, and I am confident that together we can help Metaskil to grow their transactional revenues significantly. In addition, Metaskil's resourcing capabilities will be a real advantage as we grow our resource base to support the significant demand for our technology and outsourcing solutions. As a result, the Board believes that the acquisition of Metaskil will be significantly earnings enhancing in 2013.

Having just completed what has again been a record quarter in Q3 for revenue, profitability and cash generation, there could not be a better time to be completing this acquisition, with a number of key contract awards due to be made before the end of the year. A fuller trading update of our Q3 results will be issued in a week or so, once the impact of our current momentum has been fully considered."

Application has been made for the 40,000,000 new shares to be admitted to trading on AIM. Admission of the shares is expected to occur on 15 October 2012. Following Admission Quindell will have 2,946,029,187 ordinary shares in issue. The Company has no ordinary shares held in treasury. The total of 2,946,029,187 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:

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.

Our Solutions

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.

Our Customers

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

About Metaskil Group Limited

Metaskil is a specialist provider of software services delivering to clients a broad offering from development, based on their unique Open Square component set, to the provision of key project resources.

Metaskil's insurance components can be adapted individually or combined for a complete end-to-end insurance solution, faster, cheaper and more scaleable than any alternative. Metaskil's Open Square component set underpins the most successful Telematics insurer in the UK - insurethebox. Using the Open Square component set, Metaskil delivered a solution that met insurethebox's proposition without compromise, and continues to meet their needs as they innovate and challenge the insurance market.

Since starting out in 1987, Metaskil has helped companies of all shapes and sizes build great IT project teams through the provision of interim and permanent resources. Their team of experienced Resourcing Consultants have the skills and knowledge to identify suitable candidates quickly and efficiently.

For further information, please visit www.metaskil.com