Nokia 2005 Annual Report Download - page 196

Notes to the Consolidated Financial Statements (Continued)
36. Subsequent events (unaudited) (Continued)
quarter 2006, provided that the due diligence has been completed and all necessary regulatory
approvals obtained.
Acquisition of Intellisync
In February 2006, the Group acquired 100% of the outstanding common shares of Intellisync
Corporation for cash consideration of approximately EUR 368 million. Intellisync delivers wireless
email and other applications over an array of devices and application platforms across carrier
networks. Intellisync will be integrated into the Enterprise Solutions business group, and its results
of operations will be included in the Group’s consolidated financial statements as from the
acquisition date. The purchase price allocation is being performed with the assistance of a third
party.
Assets acquired are expected to be EUR 51 million and liabilities EUR 17 million with a majority of
the excess recognised as goodwill. The principal items that are expected to generate goodwill are
the value of the synergies between Intellisync and the Group and the acquired workforce, neither
of which qualifies as a separate amortizable intangible asset. None of the goodwill is expected to
be deductible for tax purposes. The Group does not expect to write off any in-process R&D or
dispose of any of the acquired operations.
For its recently completed fiscal year ended July 31, 2005 and quarter ended October 31, 2005,
Intellisync reported revenues of USD 39 million (EUR 31 million) and USD 10 million
(EUR 8 million), respectively, and net loss of USD 13 million (EUR 10 million) and USD 8 million
(EUR 7 million), respectively. At July 31, 2005 and October 31, 2005, Intellisync’s total assets were
USD 161 million (EUR 133 million) and USD 156 million (EUR 130 million), respectively, and
shareholders’ equity was USD 82 million (EUR 68 million) and USD 79 million (EUR 66 million),
respectively.
Telsim settlement
As previously agreed with Telsim and the Turkish Savings and Deposit Insurance Fund (TMSF),
which currently controls and manages Telsim’s assets, the Group will receive a settlement
payment upon completion of the sale of Telsim’s assets for losses the Group incurred in 2001. The
Group’s share of the announced purchase price expected to be received during the first half of
2006 is 7.5% of the purchase price, or USD 341 million (EUR 285 million) and is subject to
negotiations.
F-58