30th Mar 2015 05:45
LONDON (Alliance News) - Australian law firm Slater & Gordon Ltd has struck a deal to acquire the professional services arm of AIM-listed insurance technology company Quindell PLC for GBP637 million upfront.
Slater & Gordon will pay a further, currently undisclosed, earn-out based on the performance of the professional services division's legacy noise-induced hearing loss cases.
Slater & Gordon said it will raise around AUD890 million in new equity to part-fund the deal via a fully-underwritten two-for-three pro rata accelerated renounceable entitled offer. The balance will be funded through a fully-underwritten bank deal, it added.
The law firm said the deal is condition on the approval of Quindell shareholders, with a vote scheduled to take place on April 17. The board of Quindell has unanimously recommended shareholders vote in favour of the deal, Slater & Gordon said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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