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COINSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
YEARS ENDED DECEMBER 31, 2006, 2005, AND 2004
NOTE 3: ACQUISITIONS
In connection with our acquisitions, we have allocated the respective purchase prices plus transaction costs
to the estimated fair values of the tangible and intangible assets acquired and liabilities assumed. These purchase
price allocation estimates were based on our estimates of fair values, including consideration of estimates from
third-party consultants.
On May 31, 2006, we acquired CMT for $27.5 million in cash. The acquisition was effected pursuant to the
Agreement for the Sale and Purchase of the Entire Issued Share Capital of Travelex Money Transfer Limited
dated April 30, 2006, between Travelex Limited, Travelex Group Limited, and Coinstar. In addition to the
purchase price, we incurred an estimated $2.1 million in transaction costs, including costs relating to legal,
accounting and other directly related charges. The results of operations of CMT are included in our consolidated
statement of operations from May 31, 2006, the date of acquisition, through December 31, 2006.
CMT is one of the leading money transfer networks in terms of agent locations and countries in which we
do business. In addition to company-owned locations, CMT has agreements with banks, post offices, and other
retail locations to supply its service. CMT was established in mid-2003 and uses leading edge Internet-based
technology to provide consumers with an easy-to-use, reliable and cost-effective way to send money around the
world. We acquired CMT in order to enhance our e-payment offerings, to diversify of our available services and
expand our geographic reach internationally. The assets and operations of CMT are included in our e-payment
services revenues and are shown in our consolidated statements of operations.
The acquisition was recorded under the purchase method of accounting and the purchase price was allocated
based on the fair value of the assets acquired and liabilities assumed.
The total purchase consideration consists of the following:
(in thousands)
Cash paid for acquisition of CMT ................................... $27,484
Estimated acquisition related costs .................................. 2,058
$29,542
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