Watchstone agrees sale of Quintica for £1.35m

Insurance technology company Watchstone Group, formerly known as Quindell, has agreed to dispose of Quintica Holdings Limited to Quintica International Holdings for around £1.35m.

Watchstone will be entitled to additional consideration in the event that Quintica is disposed of by QIH in the year following completion of the deal.

Following a review of the business, the company concluded that Quintica - a reseller and integrator of software to the telecoms industries – was non-core, as it does not fit with the group's current strategy and focus and due to its historical performance and associated cash funding requirements.

“Against that backdrop, the board believes a disposal is in the best interest of the group,” it said.

Under the terms of the agreement, Watchstone will receive £1m in cash, with £500,000 payable immediately and the rest due by 1 January 2017, plus the repayment of intra-company debt of $500,000 (£350,000).

At 0814 GMT, Watchstone shares were up 0.8% to 216.69p.