Update: Deal generates material earnings enhancement
Slater & Gordon (SGH) has announced the terms of its acquisition of Quindell’s Professional Services Division (PSD) for an initial cash consideration of £637m (A$1,225m) with a potential further £40m earnout. The deal will be financed through an A$890m equity raise and A$375m debt (both fully underwritten). The company's estimated EPS enhancement is 40%+ (our upgrade is higher), with the acquisition priced at c 7x EBITDA. Strategically, it provides further economies of scale and the opportunity to refocus PSD’s business.Slater & Gordon's principal activities are the operation of legal practices in Australia and the U.K. Co.'s services include: Personal Injury Law, which provides legal services in a range of personal injury areas including motor vehicle accidents, workers' compensation and civil liability law; General Law, which is made up of Personal Legal Services and Business and Specialised Litigation Services; Claims, which deals with the origination, assessment and resolution of personal injury claims with a focus on road traffic accidents; and Motor and Health Services, which provides motor vehicle accident management support and rehabilitation and medical reporting management solutions.
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.