First Data 2007 Annual Report Download - page 105

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2007 Acquisitions
Predecessor
In January 2007, the Company acquired Size Technologies, a provider of loyalty, stored value and transaction marketing solutions. Size Technologies is
reported as part of the First Data Commercial Services segment.
In February 2007, the Company acquired the assets of Datawire, an internet-based transaction delivery company. Datawire is reported as part of the
First Data Commercial Services segment.
In March 2007, the Company acquired Intelligent Results, a customer data analytics and decision management software provider. Intelligent Results is
reported as part of All Other and Corporate.
In March 2007, the Company acquired Instant Cash, a debit card and ATM payment processing service provider for community banks, credit unions,
thrifts and non-financial institutions. The preliminary purchase price allocation resulted in identifiable intangible assets of $54.3 million, which were being
amortized over three to 10 years, and goodwill of $70.2 million. A majority of Instant Cash is reported as part of the First Data Financial Institution Services
segment and the remaining portion is reported as part of the First Data Commercial Services segment.
In June 2007, the Company acquired FundsXpress, a provider of online banking and bill payment services. The preliminary purchase price allocation
resulted in identifiable intangible assets of $45.0 million, which were being amortized over eight years, and goodwill of $88.7 million. FundsXpress is
reported as part of the First Data Financial Institution Services segment.
In August 2007, the Company acquired First Data Polska, a merchant acquirer and card issuer processor in Poland. The preliminary purchase price
allocation resulted in identifiable intangible assets of $138.6 million, which were being amortized over eight years, and goodwill of $174.0 million. First Data
Polska is reported as part of the First Data International segment.
The aggregate cash paid, net of cash acquired, for acquisitions during the predecessor period from January 1, 2007 through September 24, 2007 was
approximately $690 million. The preliminary valuations of the identifiable intangible assets of the businesses acquired during the 2007 predecessor period are
contemplated in the preliminary valuation associated with the merger discussed in Note 2.
Successor
In November 2007, the Company purchased the remaining interest in its FDGS subsidiary previously owned by minority interest holders. FDGS is
reported as part of All Other and Corporate.
In October 2007, the Company acquired Deecal International, a specialist software solutions provider for commercial payments in Dublin, Ireland.
Deecal International is reported as part of the First Data International segment.
In November 2007, the Company acquired Check Forte, a payment transaction processing company in Brazil. Check Forte is reported as part of the
First Data International segment.
In November 2007, the Company formed a joint venture with Standard Chartered PLC ("Merchant Solutions"), of which the Company owns 56%. The
joint venture provides merchant processing services in Asia. Merchant Solutions is a consolidated entity within FDC and is reported as part of the First Data
International segment.
The aggregate cash paid, net of cash acquired, for acquisitions during the successor period from September 25, 2007 through December 31, 2007 was
approximately $137 million. The aggregate preliminary purchase price allocation associated with acquisitions during the 2007 successor period resulted in
identifiable intangible assets and goodwill as follows:
Preliminary
purchase price
allocation
(in millions)
Weighted-average
useful life
Software $ 4.6 7 years
Customer relationships 30.6 8 years
Other intangibles 7.8 10 years
Total identifiable intangibles $ 43.0 8 years
Goodwill $ 71.8
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