The Solicitors Regulation Authority has approved Quindell’s legal business being sold to Australian firm Slater and Gordon, the listed company said today.

Quindell announced in a statement to the London Stock Exchange it was ‘pleased’ to confirm that SRA approval was received today.

The disposal of the professional services division to the listed Australian firm for a total value of £637m was agreed last month, and rubber-stamped by Quindell investors earlier this month.

The disposal still relies on the approval of the Financial Conduct Authority.

The deal involves an ’initial cash consideration’ of £637m and a 50-50 share of profits from future noise-induced hearing loss (NIHL) claims being run by Quindell. Slater and Gordon said it would fund the acquisition by raising A$890m (£462m) in new equity.

The parties say they will share profits from the estimated 53,000 noise-induced hearing loss claims being run by Quindell until June 2017, after which Slater and Gordon will make a final payment based on unresolved cases.

The Quindell share price, which has largely stabilised since the takeover was confirmed, rose this morning by 2p (1.6%) to trade at 127p by midday.

Approval was needed by the SRA as both Quindell and Slater and Gordon are authorised as alternative business structures. Quindell has had its licence since December 2012.