Quindell Legal Services has acquired Pinto Potts Solicitors and The Compensation Lawyers following approval from regulators to operate as an alternative business structure.
The subsidiary of Quindell Portfolio, which provides software, consultancy and technology services, will pay a total of £3.0m in cash together with the issue of 87.5m Quindell shares for Pinto Potts.
Quindell is paying £30,000 in cash and 2.2m in shares for The Compensation Lawyers.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Rob Terry, Chairman and Group Chief Executive of Quindell said: "The board of Quindell Legal Services, which now operates as an approved alternative business structure, is delighted to have concluded these acquisitions in time to be able to present a consolidated balance sheet for investors and other stake-holders in our year end accounts.
"Quindell Legal Services is now the UK's largest, claimant focused, personal injury law firm (based on forecast run rate volumes) having secured long-term relationships with some of the UK's most respected motor related brands during 2012.
"These long-term relationships are part of Quindell's wider claims outsourcing arrangements covering vehicle repair, hire, recovery, broader legal services, medical reporting and multi disciplinary rehabilitation services all helping to lower the total cost of claims for the insurance industry whilst protecting the quality of customer journey and the rights of the consumer."
Quindell purchased the companies after receiving approval from the Solicitor's Regulation Authority (SRA) to operate as an alternate business structure, a law firm structure allowing non-lawyers and external investors to share management and control of law firms.
The SRA's Chief Executive, Antony Townsend, said: "Alternative business structure applicants have proved to be highly innovative and forward thinking, whether they are existing legal bodies looking to grow successful business models, proposing to grow by acquisition or creating joint ventures, or entirely new entrants to the legal services market wanting to take market share in areas of law traditionally serviced purely by all-lawyer firms.
"This application is yet another example of that innovative thinking."
The company has made an application for 89.7m shares to be admitted to trading on AIM which is expected to get the green light on January 7th.
Shares rose 3.03% to 17.00p at 8:48 Monday.
RD
