Outsourcing firm Quindell Portfolio said it had snapped up international outsourcing services firm Quintica, which has offices across Africa.
Quindell already owned about 7.7% of Quintica, and said thew two had recently won a major contract with a leading multinational telecoms group for the latter's South African operation.
"The acquisition of Quintica allows Quindell to further strengthen its systems integration capability for its technology solutions and provides a platform for further expansion into a geography where the demand for software and services continues to expand at a rapid rate," the firm said.
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
To pay for the firm Quindell has issued 38,461,538 shares and paid around £37,000 in cash.
It will also settle shareholder loans totalling about £592,000 by a payment of £271,000 in cash on completion of the deal and the issue of a further 3,025,128 shares on the first anniversary of it.
In return Quintica has warranted profit after tax of circa £710,000 for the twelve month period ending 30 June 2013.
In the event that Quintica misses its targets Quindell will receive compensation from the vendors in the form of cash equal to circa 6.5x or 8.7x the profit or cash shortfall respectively.
In the year ended 30 June 2012, the last full year for which management accounts are available, Quintica recorded revenues of around £5m.
