WTG.L Regulatory News (WTG)

RNS For release 07.00 15 August 2012

Quindell Portfolio Plc("Quindell", the "Company") Completion of Acquisition and Strategy Update

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 further to the announcement on 15 June 2012, it has completed the acquisition of Intelligent Claims Management ("ICM"), one of the largest and fastest growing cloud based claims management networks in the UK.

The terms of the acquisition were satisfied by the issue of 27,083,333 Quindell shares. In return ICM has warranted profit after tax of £0.5 million for the 12 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 6.5 x 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.

Strategy Update

The ICM acquisition follows Quindell's standard strategy used for the majority of its acquisitions to date. All acquisitions made have been significantly earnings enhancing, based both on expectations set at the time of their purchase and their subsequent performance. This has been demonstrated most recently by the sales outsourcing operations, which form part of our Brand Extension business delivering both products and services to our insurance and telecoms clients, which includes two businesses that were acquired at the time of our AIM reverse. Utility Switch Limited which joined Quindell prior to the reverse in May 2011 and Business Advisory Services Limited (BAS) announced on 21 June 2011 both operate in the same sales outsourcing marketplace and have delivered an achievement of 162% and 178% against the respective targets.

Rob Terry, Chairman and Chief Executive of Quindell said: "I would like to thank the management teams of both of these businesses for their focus and effort in delivering this exceptional performance. These results serve to demonstrate the success of our approach in acquiring growing businesses on the basis of warranted future targets, which clearly serve to motivate the management teams to deliver on their potential within the Quindell Portfolio of companies. I am delighted that we are now in a position to capitalise on the skills and expertise from each of these companies within the management team of the broader Group, to help us expand our product offerings to match the requirements of our broader insurance customer base.

"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. These wins and other initial pilots won independently of ICM with a number of major brands has ensured that July has been the strongest month in Quindell's history, with regards to all key performance indicators (including profit, cash generation and EPS) providing a great foundation for the second half of 2012 and beyond."

Application has been made for the 27,083,333 New Shares to be admitted to trading on AIM. Admission of the shares is expected to occur on 20 August 2012. Following Admission Quindell will have 2,710,665,438 ordinary shares in issue. The Company has no ordinary shares held in treasury. The total of 2,710,665,438 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.

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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