“Future of uncertainty” persuades Pinto Potts to join Quindell

'A future of uncertainty' in the personal injury world in the run-up to the Jackson reforms helped persuade Hampshire firm Pinto Potts to join Quindell Portfolio, managing partner David Pinto told Solicitors Journal this morning.

Quindell Portfolio, a business outsourcing specialist for the insurance and IT sectors, announced earlier an agreement to purchase the law firm for around £14m.

In January this year, Quindell announced a deal to buy Liverpool personal injury practice Silverbeck Rymer, under which it would acquire the firm for £19.3m.

The law firms would form part of Quindell Legal Services, which has applied to the SRA to be licensed as an ABS.

'Putting it simply, we are staring at a future of uncertainty and living in a world of unintended consequences,' Pinto said.

He gave as examples implementation of the Jackson reforms, extension of the personal injury portal to claims worth up to £25,000, QOCS and fixed fees.

'The landscape is not looking tremendous. We are really, really pleased we have found a very progressive and innovative business to work with, and glad to be part of the Quindell portfolio.'

Pinto said the ban on referral fees was another reason why the landscape would 'completely change' and why it was important to be part of a big portfolio of services like Quindell, which could 'manage the process internally'.

Pinto Potts has five partners and offices in Aldershot and Fleet. It provides services in family, probate and conveyancing as well as personal injury.

Pinto said there had been no detailed discussions so far on how Quindell Legal Services would be structured, as the agreement was only concluded late last week.

Quindell said in a statement today that it would purchase Pinto Potts, following approval from the SRA and FSA, for £3m and a large amount of Quindell shares.

'In return, Pinto Potts has warranted a profit after tax of £2 million and operating cash flow of £1.5 million for the 12 and a half month period ending 31 August 2013.'

Quindell also announced a 'partnering agreement' under which it will provide outsourcing services to the law firm, mainly in personal injury but also in probate and conveyancing.

Rob Terry, chairman and group chief executive of Quindell said: 'I would like to welcome both David Pinto and David Potts to the group where I am sure their industry expertise and experience in the sector will prove to be invaluable as we continue to grow our revenues in the personal injury space, and as we look ahead to 2013 and beyond, into other areas including wills and probate to support our broader service offering for the brands we partner.'

In a separate development, Ascent, the debt collection subsidiary of Irwin Mitchell, has announced that it is to buy Oxfordshire debt collection specialists PDP Management Services.

Ascent is already an ABS. PDP will apply for a separate ABS licence, bringing Irwin Mitchell's total to six.