MasterCard 2011 Annual Report Download - page 96

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In connection with the acquisition, the Company recognized $6 million of acquisition-related expenses,
which consisted primarily of professional fees related to completing the transaction. The Company recognized $2
million and $4 million during the years ended December 31, 2011 and 2010, respectively. These amounts were
included in general and administrative expenses. The consolidated financial statements include the operating
results of Access from the date of the acquisition.
Acquisition of DataCash Group plc
On August 19, 2010, MasterCard entered into an agreement to acquire all the outstanding shares of
DataCash Group plc (“DataCash”), a European payment service provider. Pursuant to the terms of the acquisition
agreement, the Company acquired DataCash on October 22, 2010 at a purchase price of 334 million U.K. pound
sterling, or $534 million. There was no contingent consideration related to the acquisition.
DataCash provides e-Commerce merchants with the ability to process secure payments across the world.
DataCash develops and provides outsourced electronic payments solutions, fraud prevention, alternative payment
options, back-office reconciliation and solutions for merchants selling via multiple channels. DataCash also has a
fraud solutions and technology platform. MasterCard believes the acquisition of DataCash will create a long-term
growth platform in the e-Commerce category while enhancing existing MasterCard payment products and
expanding its global presence in the internet gateway business.
The following table summarizes the purchase price allocation for the DataCash acquisition:
Fair Value at
October 22, 2010
(in millions)
Current assets ......................................................... $ 48
Property, plant and equipment ............................................ 3
Intangible assets ....................................................... 129
Goodwill ............................................................. 402
Other assets .......................................................... 7
Total assets acquired ............................................... 589
Current liabilities ...................................................... (24)
Non-current liabilities .................................................. (31)
Total liabilities assumed ............................................. (55)
Net assets acquired ................................................. $534
Purchase consideration has been allocated to the tangible and identifiable intangible assets and to liabilities
assumed based on their respective fair values on October 22, 2010, the acquisition date. The excess of purchase
consideration over net assets acquired was recorded as goodwill. The Company expects value from expanding
the Company’s e-Commerce payment and related electronic payments solutions, fraud prevention, alternative
payment options, back-office reconciliation and solutions for merchants selling via multiple channels, and other
synergies. None of the $402 million of goodwill is expected to be deductible for local tax purposes.
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