Experian 2009 Annual Report Download - page 136

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134 Experian Annual Report 2009
33. Acquisitions and disposals
(a) Acquisitions for the year ended 31 March 2009
On 10 December 2008, the Group acquired the whole of the issued share capital of Search
America
, Inc., a leading provider of
payment prediction data and analytics to the healthcare industry in the USA, for US$90m. On 1 December 2008, a company in
which the Group has a 75% interest acquired the whole of the issued share capital of KreditInform (Pty) Ltd, a leading provider
of commercial credit information and analytics in South Africa. There were no other individually material acquisitions.
In aggregate, the acquired businesses contributed revenues of US$14m to the Group for the periods from their respective
acquisition dates to 31 March 2009. The acquired businesses contributed aggregate prot after tax of US$4m to the Group for
the periods from their respective acquisition dates to 31 March 2009. If these acquisitions had been completed on 1 April 2008,
further revenues of US$22m would have been reported. It has been impracticable to estimate the impact on Group prot after
tax had the acquired entities been owned from 1 April 2008, due to the acquired entities having different accounting policies
prior to acquisition and previously reporting to different period ends.
Details of the net assets acquired at provisional fair values are as follows:
Book value Fair value
US$m US$m
Intangible assets – 63
Property, plant and equipment 1 1
Deferred tax assets – 7
Trade and other receivables 8 8
Cash and cash equivalents 4 4
Trade and other payables (12) (12)
Current tax liabilities (1) (1)
Deferred tax liabilities (8) (20)
(8) 50
Goodwill 90
140
Satised by:
Cash 122
Acquisition expenses 2
Deferred consideration 8
Recognition of minority interest 8
140
The book values above are the carrying amounts of each class of asset and liability, determined in accordance with IFRS,
immediately before the acquisition.
The fair values set out above contain certain provisional amounts which will be nalised no later than one year after the date
of acquisition. Provisional amounts have been included at 31 March 2009 as a consequence of the timing and complexity of the
acquisitions. Fair value adjustments in respect of acquisitions made during the year resulted in an increase in book value of
US$58m and arose principally in respect of acquisition intangibles. Goodwill represents the synergies, assembled workforce
and future growth potential of the businesses acquired.
Deferred consideration is primarily payable in cash up to three years after the date of acquisition and in some cases is
contingent on the businesses acquired achieving revenue and prot targets. The deferred consideration settled during the year
on acquisitions made in previous years was US$59m.
There have been no material gains, losses, error corrections or other adjustments recognised in the year ended 31 March 2009
that relate to acquisitions that were effected in the current or previous years.
Notes to the Group nancial statements continued
Financial statements