One of the biggest new entrants to the legal services market has added to its growing stable with the acquisition of personal injury firm Pinto Potts.

AIM-listed Quindell Portfolio announced the takeover this morning to the stock exchange and confirmed it has bought the firm for £3m, half which will be paid now and the remainder in 12 months. A total of 87.5m shares will also be issued, which will be subject to lock-in arrangements ranging from 12 to 36 months.

To secure the money and shares in full, Pinto Potts must return a profit of £2m after tax and operating cashflow for the year ending 31 August 2013. Pinto Potts (pictured) is a Hampshire-based litigation specialist with experience of complex trauma cases including head, spine and other serious injuries.

The acquisition comes on the back of January’s move to buy Liverpool-based personal injury firm Silverbeck Rymer in a £19.3m deal. In June, Quindell also bought Intelligent Claims Management (ICM), a virtual network of claims management companies.

As part of the partnering agreement, Pinto Potts will work alongside Silverbeck Rymer as part of Quindell Legal Services Limited.

Rob Terry, chairman and group chief executive of Quindell, said the acquisition was ‘another key step’ in the building of a combined insurance outsourcing service. He added that the company would look into other areas such as wills and probate in 2013.

He said: ‘With the significant volume of business we already have in pilot, the board have no doubt that this acquisition will be significantly earnings enhancing from completion and will assist with our ability to scale the business to a level of growth beyond our previously stated plans.’

Quindell’s share price rose by 3% on the news, which the company released with its financial results for the first nine months of 2012.