WTG.L Regulatory News (WTG)

Embargoed for release until 7.01 am 24 April 2013

Quindell Portfolio Plc

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

Crusader provides capacity for further organic growth

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 an exclusive partnering agreement, with immediate effect, and the acquisition subject to FSA approval of Crusader Assistance Group Holdings Limited (trading as "Crusader"), a specialist provider of full claims management services for a number of the UK's leading auto insurance brokers.

·; Acquisition of one of the UK's most innovative claims outsourcers for shares at a significant premium

·; Independently earnings enhancing in the current year and significantly earnings enhancing for 2014

·; Fast tracks Quindell's growth in brand extension services to brokers with new product offerings

·; Provides circa £6 million revenue and circa £15 million synergistic revenue for Quindell outsourcing per annum

The terms of the acquisition, which is subject to approval from the Financial Services Authority ("Completion") will be satisfied by the issue at Completion of 34,285,714 Quindell shares representing approximately 1% of the Group's issued share capital, together with the payment of £1 million cash and two further payments of £1 million after the end of each of the two warranted profit periods. Based on the agreed valuation of £9 million, the transaction gives an implied value of 17.5p per Quindell share. The shares are subject to lock in of between 12 and 36 months from the date of issue. In return, Crusader has warranted that the business independently will make a minimum profit after tax of £1.5 million and operating cash flow of £1.5 million for each of the two years ending 31 December 2014. The acquisition is expected to be earnings enhancing in the current year and significantly earnings enhancing in 2014 due to the volume of outsourcing work that Crusader can provide to the Group, estimated at circa £15 million per annum by 2014.

Operating for over twenty years, Crusader manages hundreds of thousands of policies per annum on behalf of their broker customers, developing brand extension services via the offering of white labelled niche policy products such as excess protect and reward, vehicle replacement, motor breakdown and legal assistance policies. Crusader, which will operate as a business within Quindell's Outsourcing Division, will assist Quindell to increase the volume that it can take on during this period of significant organic growth and further enhance the Group's ability to deliver its insurance market offering maintaining its leading position in an evolving market place in light of the recent Ministry of Justice costs reforms and LASPO implementation.

Quindell has been working within the hire area of the supply chain for Crusader during the last quarter of 2012 and the full operational model that will be in place following this announcement has been running on test since the start of the current year. Crusader will enable Quindell to increase its rate of organic growth and to be able to take on more volume from broker organisations which otherwise would have been difficult to manage organically in time to meet the immediate needs, post LASPO, of our prospective broker clients.

Rob Terry, Chairman and Group Chief Executive of Quindell said: "Crusader is already one of the most innovative claims outsourcers for the UK broker community. Quindell has validated that Crusader's operations are well respected in the industry for delivering value to its clients, and is both ethical and market leading in its approach. The acquisition, once completed, will be in line with our stated strategy of only issuing stock at a premium to today's market valuation and it is expected to be earnings enhancing in the current year and significantly earnings enhancing in 2014."

John Cosgrove, Co-founder and Operations Director of Crusader said: "As a clear market leader in broker claims outsourcing the benefit that we can gain from being associated with the Quindell market leading model is clear to both Crusader and its clients. As a result, we are very happy to accept our consideration based on shares at 17.5 pence and look forward to sharing in the benefit of the share price correction that, as with other organisations that understand the market and have sold to Quindell, we clearly believe will occur once the Quindell model is more fully understood by the investment community. Following the acquisition, Crusader will continue to focus on working with existing clients and commercial partners to provide its full claims outsourcing solutions, and in addition Crusader will now benefit from association with the ethical supply chain provided by Quindell to drive down the cost of auto claims in this new world post LASPO."

Robert Fielding, Chief Executive of Quindell Outsourcing said: "The team at Crusader already share a significant number of our corporate values, both in relation to ethical claims practices and in the development of talent within the business to ensure customer excellence, therefore I have no doubt that with the work we have already been doing together the integration of this business will be a seamless process."

Application will be made for the 34,285,714 new shares to be admitted to trading on AIM on Completion. Following Admission Quindell will have 4,000,875,910 ordinary shares in issue and up to 150,271,427 shares to be issued in respect of deferred consideration on acquisitions over the next three years.

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. Post gaining approval by the Solicitors Regulation Authority and the acquisition of our legal businesses in December 2012, including the law firm Silverbeck Rymer, Quindell finished 2012 with run rate revenue of more than £300 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