Slater and Gordon is positioning itself as the leading personal injury law group in the UK through a $1.22 billion acquisition.
The law group has agreed to pay £637 million ($1.225 billion) for the professional services division (PSD) of UK insurance claims processor Quindell.
The acquisition will be funded through a $890 million equity raising, with the rest coming from bank debt.
Managing director Andrew Grech says the acquisition will allow Slater and Gordon to further penetrate the highly fragmented £2.5 billion UK personal injury market.
“The combination of Slater and Gordon and PSD creates the number one personal injury law group in the UK,” Grech says.
“It further diversifies our sources of legal work, broadening access to claims management companies, insurers and insurance brokers.”
Slater and Gordon confirmed its full year guidance of total revenue of $500 million.
Revenue for the half year was up 37.6% to $245.3 million and net profit was up 46.5% to $33.7 million.
Slater and Gordon shares are trading 2.5% higher at $7.55.