Maine Finance is a broker based business focused on financial services products including life assurance, critical illness cover, mortgages, pensions, loans, insurances and investments to consumers and businesses in the UK.
Quindell will apply its brand extension services to Maine Finance and take advantage of the group’s existing onshore and offshore office infrastructure to help scale its operations, according to a statement from the company.
Maine Finance’s existing supplier agreements and management team will allow Quindell to grow these areas of revenue, with Quindell’s technology expertise utilised to reduce Maine Finance’s lead costs and increase margin.
Based on the agreed valuation of £2.1 million, the transaction gives an implied value of 3p per Quindell share, equivalent to a 50 per cent premium to the closing price on 31 October 2011.
Rob Terry, chairman and chief executive of Quindell, comments: “I am delighted to welcome the Maine Finance team to the group. This acquisition introduces an extensive suite of financial services products to our existing broking capability, and allows us to process the leads we generate, rather than offering them to third parties, thereby enabling us to earn commission income for our own benefit.’
Tony Smith, managing director of Maine Finance adds: ‘It is exciting for us to be joining Quindell at this stage in our business’ growth. We are looking forward to the benefits that being part of a technology enabled brand extension company can bring, and in particular are attracted by the prospect of the step-change growth opportunities that are now open to us.’