Quindell Portfolio – 13.5p

18 April 2013 – acquisition

Quindell, the provider of software, consultancy and technology to the insurance industry announced the acquisition of Iter8 Inc., a leading provider of Software as a Service (SaaS) in North America to the insurance broker and agent market. This provides an entry point for Quindell to North America. The deal worth £20.8m is a mixture of cash and shares with £2.5m cash satisfied immediately and a further cash payment of £2.5m to be satisfied in April 2014. The remainder is to be financed by shares over the next 3 years. Based on the transaction value this gives an implied value of 17.5p per share. The acquisition is expected to be profitable and cash generative this year and significantly earnings enhancing in 2014. This is a good move for Quindell, expanding the geographical coverage. BUY

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