Company has formal option to buy 80% of the firm
Insurance outsourcer Quindell has bought an additional 6% of telematics broker Ingenie ahead of its plan to acquire the entire company.
Quindell now owns 49% of Ingenie, up from 43%. The outsourcer paid for the additional 6% stake by issuing 15.3 million new shares.
Quindell revealed yesterday that it was planning to buy 100% of Ingenie.
The company said in an update today that in addition to the 6% stake, it has been granted a formal option that would give it control of 80% of Ingenie.
It is also expecting confirmation from holders of the remaining 20% of the telematics broker, which would allow it to buy the whole company.
Quindell would issue 190 million shares to pay for the 51% of Ingenie it does not yet own.
The outsourcer said it has until 31 January 2015 to exercise its option to buy the Ingenie stake, but added: “It is the group’s intention to activate it earlier as the group reaches final contracts in a number of territories with major insurers to support Ingenie’s UK and global expansion plans, and once the board is confident of being able to demonstrate significant shareholder value creation.”
In the trading update Quindell also said it has given formal notice of its intention to exercise an option to buy 75% of US-based telematics firm Himex.
In addition, the outsourcer said it had signed contracts worth an additional £200m of revenue since its last trading update on 14 January.