Acquisition of Maine Finance Limited

RNS Release Embargoed until 7.00am on Tuesday 1 November 2011

Quindell Portfolio Plc

("Quindell" or the "Group")

Acquisition of Maine Finance Limited

Quindell Portfolio Plc (AIM: QPP.L), a leading brand extension business, is pleased to announce that it has acquired the entire issued share capital of Maine Finance Limited ("Maine Finance" or the "Acquisition"), an internet based financial services broking business, for a mutually agreed valuation of £2,100,000 to be satisfied by the issue of 70,000,000 Quindell Shares ("Acquisition Shares"). This valuation has been calculated on a multiple of 7x the Acquisition's targeted profit adfter tax of £300,000 for the year ended 31 December 2012 ("Target Profit").

Maine Finance is a profitable and growing broker based business using a variable cost agent model to arrange a broad range of financial services products including life assurance, critical illness cover, mortgages, pensions, loans, insurances and investments to consumers and businesses in the UK. Historically, the majority of its business has been generated in the areas related to life assurance and mortgages.

Quindell will apply its brand extension services to Maine Finance and take advantage of the Group's existing onshore and offshore office infrastructure to help scale its operations. Maine Finance's existing supplier agreements and management team will allow Quindell to grow these areas of revenue. Quindell's technology expertise will also be utilised to reduce Maine Finance's lead costs and increase margin.

In the event that Maine Finance misses its Target Profit, the Group will receive compensation from the vendors in the form of cash equal to 7x the shortfall. In addition, the vendors have warranted that cash generated from Maine Finance will be equal to 75 per cent. of its profit after tax from today's date until 31 December 2012 ("Cash Target"). In the event that Maine Finance misses its Cash Target the Group will receive compensation from the vendors in the form of cash equal to 2x the shortfall. The maximum aggregate compensation that may be received by the Group is £2.1m.

Based on the agreed valuation of £2,100,000 the transaction gives an implied value of 3p per Quindell share, equivalent to a 50% premium to the closing price on 31st October 2011. The Acquisition Shares are subject to lock-in arrangements for 12 months from the date of completion and orderly market provisions for the following 12 months.

Application has been made for the Acquisition Shares to be admitted to trading on AIM. Admission of the Acquisition Shares is expected to occur on 4th November 2011. Following Admission Quindell will have 1,728,998,500 Ordinary Shares in issue.

Rob Terry, Chairman and Chief Executive of Quindell said: "I am delighted to welcome the Maine Finance team to the Group. This acquisition introduces an extensive suite of financial services products to our existing broking capability, and allows us to process the leads we generate, rather than offering them to third parties, thereby enabling us to earn commission income for our own benefit."

Tony Smith, Managing Director of Maine Finance said: "It is exciting for us to be joining Quindell at this stage in our business' growth. We are looking forward to the benefits that being part of a technology enabled brand extension company can bring, and in particular are attracted by the prospect of the step-change growth opportunities that are now open to us."

For further information:

Notes to Editors:

About Quindell Portfolio Plc

Quindell, the Brand Extension Company, helps its clients, investments and partners to utilise their brands, enabling them to achieve greater sales, extend the brand into new product offerings and take advantage of alternative routes to market including white labelling, franchising and using broker and agency channels.

Quindell also provides clients with its cloud based technology to deliver the necessary framework to support the online, office and field based sales and service expectations of both its clients and their customers in an efficient and cost effective manner.

In addition to extending the customer wallet share of its clients' brands, Quindell's solutions are focused on generating improvements in efficiency and effectiveness for all of its clients, and savings of over 20% against industry norms are targeted.

The Group's consultancy arm drives the business transformation of its clients, and is supported by its leading edge technology, technology enabled outsourcing, membership schemes, social media and e-commerce with out of the box implementations.

The Group currently works with more than 1,000 companies from SMEs to national and international brands around the globe, and its solutions are applied in the following sectors and their related supply chains:

·; Technology, Telecommunications and Utilities

·; Finance, Insurance and Legal Services

·; Leisure, Retail and E-commerce

·; Education

Quindell Portfolio joined the market through Mission Capital plc. The Group was readmitted to the market on 17 May 2011 following the Company's acquisition of the whole of the issued share capital of Quindell Limited. On 18 July, the Company was renamed Quindell Portfolio Plc.

For further information, please visit www.quindell.com 

ENDS