A personal injury firm is to be bought by a listed company in a £19.3m deal to create an alternative business structure (ABS).

Liverpool-based Silverbeck Rymer will be acquired by AIM-listed Quindell Portfolio for an initial £10.25m in cash, and the issue of up to 120.8m Quindell shares.

Quindell, which describes itself as a ‘brand extension company’, will partner Silverbeck Rymer in providing joint outsourcing to the UK insurance claim market, in particular the personal injury market.

The deal will be completed within months, subject to the approval of the Solicitors Regulation Authority, and is one of the first examples of law firms taking advantage of alternative business structures to expand their business.

Jim Rymer, chairman of Silverbeck Rymer, said: ‘We see significant benefits in being part of the enlarged group. Quindell has a rapidly growing presence in the insurance space and we firmly believe in its non-conflict approach to working with insurers.

‘Its positioning as thought leader, and belief in improving margins whilst lowering costs for the industry, sits well with our philosophies of working alongside insurers to help combat fraud and other areas of cost escalation.’

Rob Terry, chairman and chief executive of Quindell, said: ‘Quindell will provide Silverbeck Rymer with the opportunity to grow through giving access to the group's industry contacts and technology expertise, whilst partners and shareholders can share in the benefits of participating as holders of Quindell's equity.’

Quindell is expected to to finance the acquisition through borrowing and internally-generated funds.

Shares in the company were trading at 7.62p this morning after a 5% increase following the acquisition announcement. Earlier this month, the company announced turnover for 2011 at around £12.5m, buoyed by admission to AIM in May.