Slater & Gordon to acquire Quindell unit

Law firm Slater & Gordon is set to acquire the professional services division of insurance outsourcing firm Quindell for £637 million.

Slater & Gordon will also pay a further consideration payable in respect of the future settlement of its clients' noise induced hearing loss (NIHL) cases.

Robert Fielding, the group chief executive officer, will resign from the board and transfer with the professional services division.

Quindell’s directors said that if the disposal completes, they believe it is an appropriate time to make changes to the board.

Laurence Moorse, Robert Bright, Robert Burrow and Vice Admiral Robert Cooling will resign from the board upon or shortly after completion.

David Currie will step down as non-executive interim chairman and become a non-executive director. Richard Rose will be appointed non-executive chairman.

Jim Sutcliffe will no longer join the board and will terminate his employment on June 30, 2015 but remain as a consultant until at least the end of the year to support the management team.

Currie said: "We are pleased to announce the conditional disposal of the professional services division. This is an important landmark for Quindell, delivering significant value for investors from part of our business.

“Should the disposal complete, we are committed to a significant return of capital to our Shareholders and to return future cash proceeds over time as NIHL cases settle. We are confident that this transaction, our clear strategy and the actions we are taking will enable us to move forward with renewed purpose."