Well, maybe it won’t be another loss of great British IP to the US after all (see 360globalnet – another ‘loss’ to the US?). Quindell Portfolio, the AIM-listed, self-styled ‘brand extension’ company (we see them more as a buy-and-build insurance business process services provider – see here) has increased its stake in privately held digital technology firm, 360GlobalNet from 3% to 19% for a total of £2.15m in cash and shares. The shares were valued at 7.5p, an 11% premium to yesterday’s 6.75p close. Quindell has a one year option to raise its stake to 25.1% for £2.5m flat rate.
This is an interesting development for a few reasons. First, as mooted above, it looks like 360’s founders (and majority shareholders) Paul Stanley, Mark Jones and Doug Brown can probably save on air fares to the US trying to find funding – or indeed a new home. But also it adds some interesting IP to the Quindell proposition in insurance claims processing and related services, around which the company has been frenetically acquiring, most recently just a month ago (see Quindell makes a claim on Ai).
Thirdly, and related to this, the 360 team had an ‘interesting’ history with The Innovation Group (TIG), for whom Quindell is probably now becoming a thorn in the side. Granted, it’s still a very small thorn in rather a large side – Quindell is still sub-£10m p.a. in revenues vs £176m for TIG – but this could lead to all sorts of interesting outcomes over time. Anyway, as I say, it’s good to see that 360’s IP looks like remaining on home ground, at least for now.
By the way, Quindell listed on AIM in April 2011(as Mission Capital) at 2.47p. You need to read the admission document to see the history, but it appears that chairman and CEO, Robert Terry owns some 43% of the stock.