Quindell could sell outlying businesses following Rob Terry departure

Quindell may try to sell some of its peripheral businesses following the resignation of founder Rob Terry, according to The Telegraph.

 

The insurance outsourcer, which specialises in software, consulting and telecommunications, been through a tough time recently.

 

After a series of successful city purchases helped it build a market value of over £2.7bn at the beginning of the year, it has since lost £2bn as a result of share price volatility.

 

Founder and former chairman Rob Terry used an acquisition-focused strategy to expand the business, but the discovery that he had engaged in controversial share-dealing practices resulted in him stepping down on Tuesday.

 

Along with two other directors of the Hampshire-based company, he had sold shares to a US securities-backed lender in exchange for more cash to buy Quindell shares. 

 

Following Terry's decision to leave, there were rumours that the company would try to sell off its 25 per cent stake in Nationwide Accident Repair Services, but a confirmation on Friday that this was not happening caused shares to go up by 30 per cent. 

 

In a statement, it said: “Quindell, a market leading global provider of professional services and digital solutions, confirms that, contrary to speculation, it is not actively seeking to sell its shares in Nationwide Accident Repair Services.”

 

But given Quindell's acquisition-based growth in recent years, it is thought that the AIM-listed company might seek to offload other outlying businesses in the near future, now that it has gone through a period of rapid decline.