Quindell Portfolio, which provides software, consultancy and technology enabled outsourcing, has announced a 'significant' contract win with the RAC as part of a trading update.
The five-year contract, which has the potential to be the largest contract that the group has entered into to date, is for a combination of Quindell's services and will see the RAC using Quindell's end-to-end proposition of a complete supply chain offering for Personal Injury claims, Medical Reporting, Multi Disciplined Rehabilitation, as well as Auto Accident Repair.
The contract follows a successful pilot programme.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
The company said the RAC has agreed to a payment profile for their financial benefit that ensures that the agreement remains cash positive on the majority of transactions for Quindell.
Latest Videos FromMoneyWeek
Rob Terry, Chairman and Group Chief Executive of Quindell, said: "We are delighted to announce this significant new contract with such a distinguished and respected brand as RAC.
"This agreement once again validates Quindell's significant market leading model, which we believe will revolutionise the insurance industry, through a combination of innovative technology and integrated supply chain stamping down the cost of claims whilst above all improving the customer experience for the brands who choose to partner with Quindell."
As part of the agreement, the RAC will be granted warrants over 250m shares in the capital of Quindell exercisable at £0.13 per share (which equates to a value of £32.5m), or the average trading price in the 30 days prior to the move to full LSE listing if lower.
Meanwhile, the group said it has enjoyed a strong start to the financial year and has continued to be successful in converting 100% of its pilots to full relationships.
"The conversion of each of these pilots, together with other outsourcing wins that the group has gained, now provide the group with visibility of the outsourcing volumes required to meet the market's current full year revenue expectations for 2013," Quindell said.
It added that sale cycles have been accelerated as a result of changes within the UK insurance sector that came into force on April 1st, and further due to recent contract wins which have been achieved without going through a pilot stage.
The share price rose 12.77% to 13.25p by 09:00.
NR
