Quindell founder Rob Terry (pictured) says the acquisition can double the repair network’s profitabililty
Quindell has acquired a 22.5% stake of the largest accident repair network in the UK, National Accident Repair Services (NARS).
The transaction was enacted through a share swap, which sees Quindell take 9.7m shares of NARS in exchange for 50.2m newly issued shares in Quindell, a swap ratio of 5.17.
The acquisition is the first time the insurance outsourcing giant has bought a slice of a vehicle repair operator.
Founder and executive chairman Rob Terry told Insurance Times: “If we are able to successfully put a large proportion of the volume of claims we control through the network, whilst maintaining volume for our existing supply chain partners, in all likelihood this could double their current profitability.
“That’s the core underlying rationale for their investment.
“The intrinsic value of these businesses working together creates a unique proposition in the market. There’s no one that comes anywhere near this.”
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