WTG.L Regulatory News (WTG)

Embargoed to 7am on Tuesday 18 February 2014

Quindell Plc

Contracts and Himex Acquisition

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

Quindell 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 provide a trading update and announce contract wins and further developments in the Group's telematics opportunity.

· Additional £50+ million of outsourcing business contracted since 4 February update

· Himex option activation resulted in increase in investment to over 77%

· Additional shares purchased beyond initial option increases Himex investment to circa 85%

· Distribution agreement reached for connected car telematics in Asia and Middle East

· The ingenie Option announcement has already resulted in opportunities to significantly accelerate opportunity for growth in the US and Europe beyond previous expectations

Trading update

On 14 January 2014, the Group confirmed over £100 million of new business since the conclusion of the successful £200 million fundraise (net of expenses) in mid November 2013 and that it was in late stage negotiation for new contracts which in combination represented over £300 million per annum. On the 4 February 2014, the Group confirmed that of the £300 million in late stage negotiation, over £200 million was fully contracted.

The Group is now pleased to confirm that another £50+ million of the remaining £100 million that was still in late stage negotiation is now fully contracted, bringing the total additional new business confirmed since the start of 2014 to £350+ million.

As previously stated the new volume has been won across a number of brands, including revenues associated with claims from an associate brand of one of the UK's largest motor insurers. The Group expects that volumes resulting from these new contracts should reach full run rate by the end of the first half of the current financial year.

In addition, the Group is pleased to confirm it is in late stage negotiation with both the remaining circa £50 million previously indicated and a further £50m+. This additional £100+ million of new business increases the total business signed and at late stage negotiations since the fund raise was completed to £450+ million, in line with the upper end of guidance at the time of the fund raise.

The Group has received positive written and verbal indications on a number of significant contract renewals not due until later in the year, subject to final detailed contract terms being agreed, confirming that these contracts will be extended for additional periods ranging from one to five years. These contract renewals include significant work from broker and insurer based brands.

The Group will provide a further update on its trading, including the significant progress being made in relation to its collaboration models (which further improve the operating cash flow of the Group and deliver significant benefits for the industry by driving down the cost of claims), at the time of publishing its audited full year results for the year to 31 December 2013 in late March 2014.

Full premium listing

The Board is pleased to report everything continues to progress well towards the Group's full premium listing in the UK and that it will, at the time of its announcement of full year results, provide a more detailed update on the final anticipated timescales for this move, which is currently expected to be completed shortly following the publishing of those results. At the same time the Board will also give an update on its views on a potential dual listing, which remains a longer term objective for the Group - especially following the recent significant investor interest it is seeing from the US market where its telematics based insurance solutions are enjoying a significant amount of success.

Telematics update and increase in Himex investment

The Group has previously highlighted the opportunity to build a 10 million subscriber base each paying between $5 to $15 per month, equating to $600 million to $1.8 billion per annum in high margin recurring technology revenues in the medium to long term. This is led by the Group's telematics insurance and its other Connected Car initiatives. In addition, it has also illustrated the opportunity to further improve the margin on this revenue if the Group increased its Himex investment shareholding to a majority position and with the expansion of its distribution agreement with Himex from the UK and Canada onto a global basis.

Globally, the Group's strong positioning is supported by the findings of Ptolemus Consulting, which in its 2013 Global Study into Usage Based Insurance the Quindell/Himex proposition was the only solution out of the 77 providers surveyed that was listed in the top three in all categories: black box, OBD dongle and smartphone.

As previously stated, the Group's rationale for acquiring a significant controlling interest in the Himex Group ("Himex") is that it is in live implementations with three out of the top 20 US insurers and in pilots with a further four, as well as being in joint work in the UK and in Canada and seeing initial successes in continental Europe.

The Group is today pleased to confirm that it has now completed a number of transactions, with the Group increasing its investment in Himex in total by 66% to circa 85% ("Himex Investment"). The terms of the Himex Investment are satisfied by the immediate payment of £23 million in cash and the issue over the next seven days of 325 million Quindell shares as previously indicated.

The transaction ensures that the Group can fully leverage the unique market lead it has been establishing in the UK, Canada and the US. It also helps maximise the potential from the significant traction that the Group is seeing in continental Europe. It addition, it ensures it possesses all the key components to support the distribution arrangement for key territories within Asia and the Middle East which has also now been completed and which it is anticipated will provide a significant first mover advantage in these markets.

The Directors expect that the acquisition of Himex will be earnings enhancing in 2014 and significantly earnings enhancing in the longer term as subscriber levels continue to grow. The shares issued as part of the Himex Investment, which will represent circa 5% of the fully diluted share capital of the Company, will be subject to varying lock in arrangements of up to three years and ongoing orderly market.

Update on ingenie Option

As previously announced Quindell increased its investment in ingenie Limited ("ingenie") by 6% to circa 49% ("ingenie Investment") and was granted a formal option from shareholders, who in combination with Quindell represent over 80% of the shares in ingenie. The Group can now confirm that following discussion with the remaining shareholders that it is expecting confirmations back which, once confirmed, would see the Group having an option over 100% of the shares (the "ingenie Option").

The terms of the ingenie Option, which can be exercised up to 31 January 2015, would result in the Group issuing a maximum of 190 million shares to achieve 100% ownership. The Group previously announced its intention to activate the ingenie Option once it had reached final contracts in a number of territories with major insurers to support ingenie's UK and global expansion plans. However, announcing the ingenie Option has already resulted in new opportunities for Quindell and ingenie to consider that could significantly accelerate the level of growth planned in the US and in Continental Europe beyond previous expectations. These opportunities for major growth, in partnership with leading insurance related brands, will be fully investigated in due course, but are likely to further encourage the early activation of the ingenie Option.

Application has been made for 295,057,894 new shares to be admitted to trading on AIM, with Admission of the shares expected to occur on 25 February 2014. An application for the remaining 29,942,106 new shares to be admitted to trading on AIM will be made shortly, with admission of the shares expected to occur on 6 March 2014.  Following both Admissions, Quindell will have 6,186,974,429 ordinary shares in issue. The Company has no ordinary shares held in treasury. The total of 6,186,974,429 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 FCA's Disclosure and Transparency Rules.

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Notes to Editors:

About Quindell Plc

Quindell Plc is a provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets being insurance, telecommunications and their related sectors. Quindell enters 2014 with a run rate of gross sales approaching £600 million and approaching £200 million of EBITDA, and has announced new contract wins since the start of 2014 that together with those under final negotiation amount to a further £450m due to start during 2014. Our award winning business transformational, software, consultancy 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