Quindell to buy Intelligent Claims Management

Outsourcing firm Quindell Portfolio has agreed to buy Intelligent Claims Management (ICM), an online claims management network.

Quindell has also signed a commercial agreement with ICM outlining its working relationship with the firm.

The deal closely follows Quindell’s purchase of insurance software house IT-Freedom. The company is also in the process of buying claims management firm Ai Claims.

Quindell will pay for ICM in stock. It will issue 27.1 million shares. In return, ICM has pledged to make a profit after tax of £500,000 for the year to 31 May 2013 and generate cash at least equal to the profit target.

If ICM misses its profit or cash targets under the deal, it will pay Quindell the cash equivalent of 6.5 times the shortfall.

In the year ended 31 December 2011 ICM reported turnover of £1.2m and profit before tax of £300,000.

Quindell expects the acquisition to provide it with a platform to engage directly with the independent claims management companies that use ICM’s network.

With the banning of referral fees from April 2013, Quindell contends the integration of the ICM platform into its operation will offer independent claims management companies an alternative business structure to continue to transact business in a more controlled and regulated ethical environment, reducing the cost of claims.