Quindell Portfolio acquires Compass Costs Consultants

Quindell Portfolio, which provides expertise in software, consultancy and technology enabled outsourcing, has acquired UK legal costs consultancy Compass Costs Consultants.

Quindell Portfolio, which provides expertise in software, consultancy and technology enabled outsourcing, has acquired UK legal costs consultancy Compass Costs Consultants.

The company purchased Compass Costs though the issue of 80m shares, representing a 2.0% interest at an agreed valuation of £14m or 17.5p per share.

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Shares are subject to lock in of between 12 and 36 months from the date of issue.

In return, Compass Costs has warranted a profit after tax of £2.0m and operating cash flow of £1.5m for the year ended December 31st 2012.

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The most recent filed accounts showed Compass Costs achieved a record turnover of around £6.4m and pre-tax profits of approximately £1.3m for the year to January 31st 2012.

Quindell said the acquisition is expected to be earnings enhancing this year and in 2014. The legal services volume for Compass Costs is estimated at over £20m per annum by 2014, making it the UK's largest costs draftsmen.

Compass Costs specialises in clinical negligence costs recovery and personal injury costs recovery and litigation. It will operate as a division within Quindell Legal Services.

Rob Terry, Chairman and Chief Executive of Quindell said: "Compass Costs is already one of the UK's largest cost draftsmen, but with the benefit of our volume, it becomes the largest. Its operation is well respected in the industry for delivering value to its clients, and is both ethical and market leading in its approach.

"The acquisition has been completed in line with our stated strategy of only issuing stock at a premium to current market valuation and it is expected to be earnings enhancing in the current year and significantly earnings enhancing in 2014."

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