Quindell buys accident rehab firm

Insurance outsourcing firm Quindell has bought accident rehabilitation and medical reporting firm React and Recover.

However, the company also revealed in a strategy update that its growth through acquisitions will slow down in 2014.

Quindell has paid for the purchase of React and Recover in shares and cash. It has issued 70.7 million new shares at 17.5p a share and paid £625,000 in cash.

Under the deal, React and Recover has warranted to make an after-tax profit of £2m and generate cash flow of £1.5m in 2013.

Acquisition slowdown

Quindell also announced that although it will still consider acquisitions, it expects acquisitions to account for between 10% and 20% of its growth in 2014, with the remaining 80% to 90% generated organically.

Quindell founder and executive chairman Rob Terry (pictured) said: “The group has already delivered a significant amount of organic growth, and we expect this to continue throughout 2013 and beyond.

“The acquisition of React and Recover further enhances our ability to service this growth and our ability to deliver our outsource proposition to the UK insurance sector.

“The fact that our previous acquisitions are delivering on their warranted performance to the extent that we can now agree to accept their warranted performance as completed is very positive news and enables the group to complete the full integration of these businesses ahead of schedule.”