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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
55
Goodwill represents the excess of the purchase price over the fair values of assets acquired and liabilities assumed. Goodwill is primarily
attributable to expected growth opportunities, synergies and other benefits that we believe will result from combining the operations of
Borderfree with our operations. Goodwill is not deductible for tax purposes.
Intangible assets acquired consisted of the following:
Value
Amortization
period
Customer relationships $ 116,200 10 years
Developed technology 12,600 5 years
Trade names 8,700 5 years
$ 137,500
The results of operations of Borderfree are included in our consolidated results from the date of acquisition. Our consolidated operating
results for the year ended December 31, 2015 includes revenue of $63 million from Borderfree operations. On a supplemental pro forma
basis, had we acquired Borderfree on January 1, 2014, revenue would have been $47 million and $125 million higher for the years ended
December 31, 2015 and 2014, respectively. The impact on earnings would not have been material.
Other Acquisitions
In October 2015, we acquired the net assets of Zip Mail Services, Inc. (Zip Mail) for $6 million in cash plus additional payments totaling
$1 million during the period 2016-2017. Zip Mail acts as an intermediary between customers and the U.S. Postal Service. Zip Mail
offers mailing services that include presorting of first class, standard class and flat mail. Zip Mail is reported within our Presort Services
segment.
In May 2015, we acquired Real Time Content, Inc. (RTC) for $6 million, net of cash acquired. RTC provides technology that enables
clients to provide personalized interactive video communications to their customers. RTC is reported within our Software Solutions
segment.
In January 2016, we acquired Enroute Systems Corporation (Enroute) for $14 million in cash plus potential additional payments during
the periods 2017-2019 based on the achievement of revenue targets during the periods 2016-2018. Enroute is a cloud-based, software-
as-a-service enterprise retail and fulfillment solutions company. Enroute will be reported within our Global Ecommerce segment.
Divestiture
In May 2015, we sold Imagitas for net proceeds of $292 million. We recognized a pre-tax gain of $111 million, which was reported within
other (income) expense, net in the Consolidated Statements of Income.