Technology recruiter InterQuest has reached a £1m out-of-court settlement with Contract Connections Ltd (CCL) after a major client terminated its contract with CCL after InterQuest had bought the company last year.

InterQuest bought the entire share capital of CCL for £4m on 21 June last year. On 12 August, the group announced that a major client of CCL terminated its contract with that company.

On 23 December 2011, the group announced it had issued formal notice against the vendors of CCL for a claim for repayment of funds.

However, the case and now been settled and under the terms of the settlement the cash repayment is payable by 7 December this year.