Barnstorming software outsourcing firm Quindell Portfolio said it has bought Metaskil, a provider of software services to the insurance and telecoms industries.
Quindell, which has seen its shares rise 400% in the last year, said it was paying for the firm through the issue of 40m new shares.
The company expects the acquisition to be slightly earnings per share (EPS) enhancing in the remaining period to December 2012, while significantly improving EPS during 2013.
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
Metaskil has warranted to make pre-tax profits of around £632,000 for the twelve month period ending September 30th 2013 and to generate cash of at least £316,000 during that time.
The new Quindell shares will be subject to lock in of between 12 and 36 months from the date of issue.
Rob Terry, Chairman of Quindell, said his firm was already working with Metaskil on a number of strategic accounts, including the largest telematics insurer in the UK as well as a number of other blue-chip organisations.
"I am confident that together we can help Metaskil to grow their transactional revenues significantly," he added.
"In addition, Metaskil's resourcing capabilities will be a real advantage as we grow our resource base to support the significant demand for our technology and outsourcing solutions."
