18th Feb 2014 09:49
LONDON (Alliance News) - Quindell PLC, the software, consultancy and outsourcing technology company, said Tuesday it has won a further GBP50 million of outsourcing business contracts, in addition to the GBP200 million it announced earlier this month.
In a trading update on February 4, Quindel said it had won an additional GBP200 million in outsourcing business contracts, increased its investment in Ingenie Ltd, and advanced plans to acquire a majority stake in Himex Ltd.
Quindell said more than GBP50 million of the remaining GBP100 million that was still in late stage negotiation is now fully contracted, bringing the total additional new business confirmed since the start of 2014 to more than GBP350 million. It said the new volume has been won across a number of brands, including revenues associated with claims from an associate brand of a large UK motor insurer.
The group also said it has completed a number of transactions relating to software developer Himex, and has now increased its investment in Himex to around 85%.
The group said by exercising its option, it has increased its investment in the software developer Himex, to over 77%, and additional shares bought beyond the initial option, increases the Himex investment to around 85%. Quindell said the terms of the Himex Investment include the payment of GBP23 million in cash, and the issue over the next seven days of 325 million Quindell shares.
Quindell highlighted again, that it expects the acquisition of Himex to become earnings enhancing in 2014 and significantly earnings enhancing in the longer term as subscriber levels continue to grow in the UK, Canada and the US.
The group also recently increased its investment in Ingenie to around 49% and was granted a formal option from shareholders, who in combination with Quindell represent over 80% of the shares in Ingenie. Quindell said that following discussion with the remaining shareholders, it expects to have an option over 100% of the shares. The terms of the Ingenie option - which can be exercised up to the end of January 2015 - would result in Quindell issuing a maximum of 190 million shares to achieve 100% ownership.
Shares in the company were trading at 40.74 pence per share Tuesday morning, 2.5% higher or 0.99 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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