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The specialist technology recruiter, InterQuest Group plc (LSE: ITQ), , announced today that they have reached an out of court settlement following mediation with the vendors of Contract Connections Limited "CCL".
InterQuest purchased the entire share capital of CCL on 21st June 2011 for a consideration of £4 million. However, on 12th August 2011, the Group announced that a major client of CCL terminated its contract with CCL. On 23rd December 2011, the Group announced that it had issued formal notice against the vendors of CCL that it would be pursuing a warranty claim for a repayment of consideration.
The settlement agreement was signed on Friday 9th November and, under the terms of the settlement agreement, the cash repayment of consideration is payable by the vendors to InterQuest by 7th December 2012. The settlement was reached on the basis that the vendors of CCL made no admission of liability or of wrongdoing in any respect relating to the subject matters of the claim.
Gary Ashworth, Chairman of InterQuest, commented: "I am pleased that we have reached an agreement to settle the warranty claim against the vendors of CCL and that this matter is now concluded. This has been an unwelcome distraction on management time and we can now focus entirely on delivering our strategy which will see InterQuest emerge as a broader and stronger IT recruitment business".
In early trading this morning the share price was up +3.37% at 46pence 48.39% above the 52 week low of 31.00 set on Aug 07, 2012 but -20.69 below a year ago. This means the company is valued at £14.73 million.