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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
53
The following table summarizes selected financial data for the opening balance sheet allocations of the acquisitions in 2008 and 2007:
2008 2007
Zipsort, Inc. Asterion SAS Digital Cement, Inc. MapInfo Corporation
Purchase price allocation
Short-term investments $ - $ - $ - $ 46,308
Current assets 42 52,309 2,146 40,121
Other non-current assets 12,617 31,303 932 35,826
Intangible assets 7,942 8,285 6,600 113,000
Goodwill 24,962 25,555 42,583 327,219
Current liabilities (4,063) (58,286) (213) (63,012)
Debt - - - (13,866)
Non-current liabilities (2,994) (30,345) - (50,060)
Purchase price, net of cash acquired $ 38,506 $ 28,821 $ 52,048 $ 435,536
Intangible assets
Customer relationships $ 7,658 $ 6,766 $ 6,100 $ 75,900
Mailing software and technology - - - 29,500
Trademarks and trade names - 1,519 500 7,600
Non-compete agreements 284 - - -
Total intangible assets $ 7,942 $ 8,285 $ 6,600 $ 113,000
Intangible assets amortization period
Customer relationships 15 years 7 years 7 years 10 years
Mailing software and technology - - - 5 years
Trademarks and trade names - 2 years 2 years 5 years
Non-compete agreements 3 years - - -
Total weighted average 15 years 6 years 7 years 8 years
Allocation of the purchase price to the assets acquired and liabilities assumed has not been finalized for Zipsort, Inc. The purchase
price allocation for this acquisition will be finalized upon the completion of working capital closing adjustments and fair value
analysis. Final determination of the purchase price and fair values to be assigned may result in adjustments to the preliminary
estimated values assigned at the date of acquisition. The amount of tax deductible goodwill added from acquisitions in 2008 and 2007
was $27.4 million and $27.5 million, respectively.
During 2008 and 2007, we also completed several smaller acquisitions, the cost of which was $29.7 million and $86.6 million,
respectively. These acquisitions did not have a material impact on our financial results.
Consolidated impact of acquisitions
The Consolidated Financial Statements include the results of operations of the acquired businesses from their respective dates of
acquisition.
The following table provides unaudited pro forma consolidated revenue for the years ended December 31, 2008 and 2007 as if our
acquisitions had been acquired on January 1 of each year presented:
2008 2007
Total revenue $ 6,288,242 $ 6,351,981