SLATER & GORDON EYES BILLION-DOLLAR DEAL

SLATER & GORDON EYES BILLION-DOLLAR DEAL
SLATER & Gordon is looking to acquire Quindell's Professional Services Division (PSD) in the UK, following its announcement of an A$890 million accelerated renounceable entitlement offer.

The firm has entered a trading halt on the ASX in the lead-up to announcing the billion-dollar acquisition.

The agreement is in line with Slater & Gordon's growth strategy, as the firm intends to deepen its base in the UK and become the leading personal injury law group over there.

The company has entered into the agreement with Quindell in return for upfront consideration of A$1,225 million and an earnout based on performance of PSD's legacy noise inducted hearing loss cases.

Slater & Gordon is seeking to raise approximately A$890 million in new equity to fund the acquisition through a fully underwritten, 2 for 3 pro rata accelerated renounceable entitlement offer.

The balance of the upfront consideration will be funded by fully underwritten bank debt.

The transaction is conditional on a majority vote by Quindell shareholders, which is scheduled for Friday, 17 April 2015. Quindell's Board have unanimously recommended that Quindell shareholders vote in support of the transaction.

Slater and Gordon's managing director Andrew Grech says the acquisition is a "transformational opportunity".

"It will allow Slater and Gordon to further penetrate the highly fragmented £2.5 billion UK personal injury market," says Grech.

"It further diversifies our sources of legal work, broadening access to claims management companies, insurers and insurance brokers.

"PSD's Health and Motor services increase our touch points along the claims value chain and increase client delivery and capture opportunities."


Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Board exodus gathers pace at The Star after O’Neill resigns as chairman

Board exodus gathers pace at The Star after O’Neill resigns as chairman

The Star Entertainment Group (ASX: SGR) is now on the hunt for a ne...

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Vet services business Apiam Animal Health (ASX: AHX) has gone ...

Scrap metal recycler Sims picks up Brisbane port site for $88 million

Scrap metal recycler Sims picks up Brisbane port site for $88 million

In order to acquire one of the few remaining Brisbane sites with de...