Quindell telematics may be bought out

Like this post?

Quindell could see its remaining businesses bought out by financier Edmund Truell if the rumours are to be believed. Earlier this year its share prices tanked and eventually recovered after it sold off large portions of its national roadside repair service but now it may end up selling the whole hog.

Apparently Truell is most interested in the company’s telematics business, which aids insurance firms in keeping an eye on their customer’s driving habits and helps those same drivers improve over time. However this portion of the firm now represents a substantial part of it, since with many of its other businesses sold off, Quindell is a much smaller company than it once was.

That’s thanks to share holders earlier this month continuing the sell off of assets like the firm’s legal division, which went to Slater and Gordon for a cool £637 million.

ingeniephone

Ingenie’s smartphone tracking apps have helped pioneer telematics insurance tracking in the UK

 

Remaining businesses under Quindell’s umbrella include the likes of Himex, itr8 and Ingenie to name but a few, the latter of which is one of the more popular usage based insurance firms in the UK. However, as well known as they may be, they represent a far smaller industry than that which has been sold off already. While Quindell may have netted over half a billion for previously auctioned assets, the telematics division is slated to be worth a much smaller £60 million.

This may not be the case for long however, as the share prices for Quindell have been all over the place since the start of the year. As The Telegraph points out, when Gotham City Research issued a report which shone a poor light on its busines dealings, the stock dropped from a high of 240p each, to just 32p in short order. It has since recovered to over 127p per share, but it’s still far from the firm’s height.

If it was hit with another big dip in share value, the buyout of Quindell could end up netting even less for existing shareholders. However, if successful, it could take Quindell’s current properties in new and much more profitable directions. Having the sort of financial backing offered by Truell could give the businesses’ partners and members much more confidence going forward.

What do you guys think will happen with Quindell in the next few months?

The following two tabs change content below.
Jon Martindale is an English author and journalist, who's written for a number of high-profile technology news outlets, covering everything from the latest hardware and software releases, to hacking scandals and online activism.