Outsourcing firm scales up telematics capacity with £9.5m purchase
Outsourcing firm Quindell Portfolio is buying insurance software house IT-Freedom in a £9.5m cash and share deal.
It will rename the company Quindell Enterprise Technology Solutions.
Quindell will issue 49.7m new shares at 12p a share and pay £3.5m in cash for IT-Freedom. It will pay £500,000 on completion of the deal and then £1m in 2013, 2014 and 2015.
Quindell said it made the purchase to increase delivery capacity to cope with its pipeline of work. The company said the additional capacity will be required once first-mover restrictions are removed from its technology deal with telematics intermediary Ingenie.
The restrictions prevented Quindell from selling telematics-related insurance technology solutions to other insurance companies until 2012.
IT-Freedom was founded, and is majority-owned, by Mick Sargeant and Andrew Passfield, following their departure from the Innovation Group in 2002.
Quindell chairman and chief executive Rob Terry said: “We are delighted to be extending our technology delivery capability with the addition of IT-Freedom’s ICE product suite and proven expertise.
“This acquisition broadly completes our technology platform for the provision of insurance services. With pipelines for the sale of insurance solutions at record levels this acquisition allows us to scale up to meet demand. I am personally looking forward to working with Mick, Andrew and the team again, as we focus once more on bringing transformational technology solutions to the insurance marketplace”
IT-Freedom founders Sargeant and Passfield added: “Having worked closely with Rob and many of the Quindell executives in the past we are delighted once again to be part of the team which is focused on bringing disruptive change and delivering significant savings for the insurance industry.”
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