WTG.L Regulatory News (WTG)

RNS Not for Release until 7.00 am 18 September 2012

Quindell Portfolio Plc

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

Major Contract Win and Acquisition

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 a major contract win in South Africa and the acquisition of Quintica SA (Pty) Limited and Quintica International Limited (collectively "Quintica") a specialist systems integrator and outsource service provider to the telecommunications marketplace throughout the Middle East and Africa.

Quintica has offices in South Africa, Ghana, Nigeria, Kenya, Uganda, Dubai and Abu Dhabi, delivering a combination of technology solutions and supply chain management services to a number of the major national carriers and multinational telecom groups. Quintica, a business that Quindell has recently taken a circa 7.7% ownership in, has been working closely with Quindell over the past 12 months on a number of strategic implementations of Quindell's Challenger OSS technology. As well as currently being engaged in a number of key joint bid opportunities, Quintica, in combination with Quindell has recently won a major contract with a leading multinational telecoms group for their South African operation.

The acquisition of Quintica allows Quindell to further strengthen its systems integration capability for its technology solutions and provides a platform for further expansion into a geography where the demand for software and services continues to expand at a rapid rate.

The terms of the acquisition have been satisfied by the issue today of 38,461,538 Quindell shares and circa £37,000 in cash and the settlement of shareholder loans totalling circa £592,000 by a payment of circa £271,000 in cash at completion and the issue of a further 3,025,128 shares on the first anniversary of completion. In return Quintica has warranted profit after tax of circa £710,000 for the twelve month period ending 30 June 2013 (the "Target Profit") and cash generated during the period to be no less than £530,000 (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 Quintica misses its Target Profit or Cash Target, the Group will receive compensation from the vendors in the form of cash equal to circa 6.5x or 8.7x the profit or cash shortfall respectively. In the year ended 30 June 2012, the last full year for which management accounts are available, Quintica recorded revenues of circa £5.0 million.

As previously announced by the Company in its Acquisition and Strategy Update on 15 August 2012, this approach to acquiring companies using warranted targets has proven to be a successful method of acquiring companies, consistently delivering an achievement of over 150% of their respective targets.

Whereas the acquisition of Quintica is only expected to be slightly Earnings Per Share ("EPS") enhancing in the remaining period to December 2012, the Company expects it to be significantly EPS enhancing during 2013.

Rob Terry, Chairman and Group Chief Executive of Quindell said: "I am delighted to announce the tighter integration of the Quintica team within Quindell through this acquisition. Their knowledge and expertise with our Challenger OSS platform has already helped us in a number of international opportunities and now as part of the Group we look to expand our reach within the Middle East and African territories and beyond. The combination of technology expertise and demonstrable track record in outsource service provision is an ideal match for the Quindell business model and philosophy.

The rationale for this acquisition is clearly demonstrated by the recent major contract win with a leading multinational telecoms group for their South African operation. This contract, in combination with other wins underpins the significant growth in Quintica's business plan as part of Quindell in 2012 and beyond. The board of Quindell remains extremely confident of meeting current and future market expectations and is focused on delivering strong organic growth and earnings enhancing acquisitions beyond these levels to underpin its own 2p EPS target for options and bonuses in 2013."

The Group has also issued today a further 10,000,000 shares in relation to its previous announcement regarding Quindell Motor Services Limited dated 14 May 2012 to acquire consulting companies in order to assist in meeting its target profit. Application has been made for the 48,461,538 new shares to be admitted to trading on AIM. Admission of the shares is expected to occur on 21 September 2012. Following Admission Quindell will have 2,765,126,976 ordinary shares in issue. The Company has no ordinary shares held in treasury. The total of 2,765,126,976 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