Quindell buys law firm and claims manager

Quindell Portfolio, a business outsourcing specialist for the insurance and IT sectors, has announced a deal worth £60m to buy the combined business of law firm The Compensation Lawyers (TCL) and leading claims management company Abstract Legal Holdings (ALH).

The acquisition of TCL is the third law firm purchase Quindell has made this year, following deals to buy personal injury firm Silverbeck Rymer and Pinto Potts for £3m in October.

The Compensation Lawyers will be bought for £30,000 in cash and 2.2m Quindell shares, valued at £385,000, locked in for 12 to 36 months.

The group yesterday confirmed an agreement with Abstract Legal Holdings, the parent company of Accident Advice Helpline, for £14.97m in cash and more than 28.5m new shares.

Rob Terry, chairman and group chief executive of Quindell said: “The addition of a proven, trusted, direct consumer channel to our business model allows us to manage claims from the full range of sources through a managed, ethical supply chain, driving down the cost of claims for the industry.

“I am confident that having such a high profile and respected brand within the Quindell stable will support our broader extension into consumer advice services, and our partnership to date has been greeted with enthusiasm by the insurance brands that we partner with.”

The Compensation Lawyers was previously one of ALH panel law firms and derived all its business from it.

Described by Quindell as an “ethical online consumer brand”, Accident Advice Helpline (AAH) last year recorded revenue of around £30m for the year ending 31 May 2012, with profits of £5.1m and net assets of £4.7m.

Quindell has been part of the AAH panel since its acquisition of Silverbeck Rymer for £19.3m in January 2012.

Subject to approval from the Solicitors Regulation Authority and Financial Services Authority, the deal to buy ALH will be completed on or after 2 April 2013.