Australian law firm Slater & Gordon Ltd said it has agreed to buy a unit of British technology and outsourcing company Quindell Plc for A$1.2 billion ($928.1 million), in a bid to penetrate the highly fragmented UK personal injury market.

Slater & Gordon said it is seeking to raise A$890 million in new equity to fund the acquisition of Quindell's Professional Services Division (PSD).

"The combination of Slater & Gordon and PSD creates the number one personal injury law firm in the UK," Slater & Gordon Managing Director Andrew Grech said. "It further diversifies our sources of legal work, broadening access to claims management companies, insurers and insurance brokers."

Shares in Quindell have slumped since short-seller Gotham City Research questioned the company's revenue model and profit quality last April.

Quindell, which lists Aviva Insurance Plc, British American Tobacco Plc and Royal Mail Plc among its customers, rejected Gotham City's concerns.

Before the Slater & Gordon deal was announced, Quindell said the sale would improve its working capital profile.

The deal is conditional on a majority vote by Quindell shareholders, which is scheduled for April 17. Slater & Gordon said Quindell's board has unanimously recommended shareholders accept the offer and that it has already secured firm commitments representing more than 15 percent of Quindell's issued share capital.