WTG.L Regulatory News (WTG)

Embargoed for release until 7.00 am 3 May 2013

Quindell Portfolio Plc

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

Expansion into Property Claims with Major UK Listed Insurer

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 Quindell Property Services Limited ("QPS"), a newly formed Group providing disruptive outsourcing and technology solutions to the property insurance market place.

·; Acquisition and controlling stake in innovative SaaS based claims outsourcer for shares at a premium

·; Fast tracks Quindell's expansion into global property insurance claims market

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

·; Potential for £10 million profit before tax from property services in 2014

·; Proven strategy to save up to 30% on property claims and global pipeline of opportunities identified

Quindell Property Services is a newly formed group bringing together a number of businesses owned by the vendors, related to the supply of outsourced property services and SaaS based enabling technologies. This transaction will enable Quindell to increase its shareholding in 360GlobalNet Limited ("360") from 19% to 60% as well as acquiring associated companies. The vendors have agreed to a significant element of their consideration being tied to achieving £10 million profit before tax in each of 2014 and 2015 from the provision of property services.

360 is an innovative technology and consultancy company founded by Paul Stanley, with specialisms in the business use of video and rapid data-mining of all data formats with particular emphasis on fraud prevention, compliance monitoring and managed crowd sourcing within the insurance sector. 360 has already conducted a pilot program with a major Listed insurer to address key elements of its low, medium and high value property claims strategy and this project has now reached a critical stage validating the opportunity to save up to 30% of the cost of property claims with a proven disruptive technology enabled strategy to change the dynamics of property supply chain and with a global pipeline of opportunities identified. Quindell was a founding investor in 360 and in April 2012, following its first £30 million fundraise, one of its key use of proceeds was to increase its ownership in 360 from 3% to 19% for a total consideration of £2.15 million. 

Paul has significant experience in the insurance industry and is a member of Quindell's Strategy and Integration Advisory Board, previously working with groups including Royal Insurance and Direct Line where he won Post Magazine's claims manager of the year. Paul is a serial founder of successful companies specialising in outsourcing, data technology, perils modelling and geographic information systems. The sale of his previous companies, Infront Solutions Limited, Addressology Limited and Conversant Data Limited, were negotiated by current members of Quindell's management team. These transactions typically followed the taking of an initial minority. Infront Solutions Limited was awarded in 2012 the contract to handle all of Royal Bank of Scotland Insurance's newly notified subsidence claims, estimated to contribute approximately £40 million to its revenue over its three-and-a-half year life and in 2007 won a five year contract to service Royal and Sun Alliance's subsidence claims worth over £30m.

The services provided by QPS will enable Quindell to accelerate the development of new products and propositions in the property claims sector, with the opportunity to build on QPS's revenues using Quindell's existing insurance and affiliate clients, help clients to create further differentiation in product offering and improve customer retention and drive down the cost of property claims by up to 30%.

Rob Terry, Chairman and Group Chief Executive of Quindell said: "Having worked with Paul as a client, an advisor and then as a colleague in my previous company, his track record in developing disruptive strategies to drive down the cost of claims is well proven. Quindell welcomes Paul back to what we feel is his natural home as part of a team of innovative industry consultants dedicated to delivering improvements in profitability for the insurance market with disruptive business transformation strategies. Having been involved in the development of our combined property claims strategy for over five years we are pleased to be able to now validate our long term investment strategy and to be able to start capitalising on this solution for the industry."

Paul Stanley, Chairman and Chief Executive of 360GlobalNet said: "I am delighted to be announcing this important development in our respective Group's relationship. As previously stated in 2012, 360GlobalNet's technology has the capability to change industry practice. Quindell's ability to demonstrate thought leadership within the insurance industry is similarly impressive as clearly demonstrated by their recent acquisition program and major contract wins which put them in a unique and enviable position to bid for outsourcing work in an industry that is undergoing significant change. As a result, our fit with Quindell's existing software, consulting and technology enabled business process outsourcing services is extremely compelling."

The terms of the acquisition have been satisfied by the immediate issue of 65,978,572 Quindell shares representing approximately 1.6% of the Group's issued share capital, and further issues of up to 21,111,111 shares issued contingent on the business achieving £2m of profit for 2013. Subject to the property business achieving a minimum of £10 million profit before tax and operating cash flow in each of two respective warranted profit years to 30 September 2015 a further 84,444,444 and 84,444,445 shares are also contingently issuable. The acquisition is therefore expected to be significantly earnings enhancing as from 2014.

Based on the agreed initial valuation of £11.5 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.

Application has been made for the 65,978,572 new shares to be admitted to trading on AIM. Admission of the shares is expected to occur on 10 May 2013. Following Admission Quindell will have 4,066,854,482 ordinary shares in issue and up to 340,271,427 shares to be issued in respect of deferred consideration on acquisitions over the next three years. The Company has no ordinary shares held in treasury. The total of 4,066,854,482 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. 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