SLATER AND GORDON FINALISE $1.23B DEAL
Written on the 4 June 2015
SLATER and Gordon Limited (ASX:SGH) has finalised its $1.23 billion acquisition of UK legal technology company Quindell.
The firm signalled its intention to purchase the company's Professional Services Division (PSD) in March, and was given the green light by British regulators last month.
Slater and Gordon managing director Andrew Grech (pictured) says the acquisition will allow the firm to leverage Quindell's platform of businesses.
"Since the transaction was announced in March our senior executive team led by Ken Fowlie has been working very closely with our new colleagues," Grech says.
"Through this process we have been able to confirm the findings of our extensive due diligence work.
"We all recognise the challenges ahead but remain very confident that we can deliver the performance required to underpin the strategic rationale for the transaction.
"We welcome the PSD team and look forward to working with them to execute on this transformational opportunity."
Grech says the PSD is expected to be more than 30 per cent earnings per share accretive in the first year of full ownership.
The deal will allow the firm to diversify its source of legal work by entering the £2.5 billion personal injury market in the UK.
Quindell non-executive chairman Richard Rose says the sale heralds an end to a period of uncertainty for the company.
"This represents a significant milestone in the transformation of Quindell," Rose says.
"We are pleased to be able to put in place a board with the skills necessary to guide Quindell as it begins life as a very different company."