Quindell completes purchase of claims management network

Outsourcing firm Quindell has completed its previously-announced purchase of online claims management network Intelligent Claims Management (ICM).

Quindell is paying for the company in stock, and has issued 27.1m new shares to satisfy this. The shares are expected to start trading on the London Stock Exchange’s Alternative Investment Market on 20 August.

Quindell’s rationale for buying ICM is to forge closer relations with the independent claims managers that use the network.

Under the terms of the deal, ICM has pledged to make a profit after tax of £500,000 for the year to 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 chairman and chief executive Rob Terry said: “As a result of working with ICM over the past months, a number of joint client contracts have been achieved validating our shared vision for the use of technology to facilitate change within the insurance industry to stamp down the cost of claims.

“These wins and other initial pilots won independently of ICM with a number of major brands has ensured that July has been the strongest month in Quindell’s history, with regards to all key performance indicators (including profit, cash generation and EPS) providing a great foundation for the second half of 2012 and beyond.”