Quindell, the AIM-listed telecoms and insurance services firm, has signed the world’s biggest telematics contract to date.
The contract is a joint investment with breakdown cover and car insurance group RAC in which a new organization, Linked Car Remedies Limited (CCS), will distribute their ‘combined connected vehicle capabilities’.
CCS will be 51%-owned by Quindell, while RAC will hold the other 49% interest. They have every single agreed to contribute £15m in an preliminary investment and have committed, topic to specific events, to fund the organization in blend up to £100.
Quindell stated it will meet its share of the preliminary funding as component of the £50m it put aside from the recent £200m fundraise, having spent £30m to date. The company mentioned it must not require to increase new capital to meeting funding obligations.
The business has now raised its targeted subscriber base each and every having to pay among $ 5 to $ 15 per month by 20% to 12m. This will equate to $ 720m to $ 2.2bn per annum in high margin recurring technological innovation revenues in the medium to longer term, it mentioned.
Quindell’s Founder and Chairman Rob Terry mentioned: ‘We are delighted to announce this significant new contract with such a distinguished and respected brand as RAC.’
The stock was up 7.2% at 41.81p by 11:forty.