Tucows 2015 Annual Report Download - page 193
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The purchase consideration is comprised as follows:
Cash $ 3,135,140
Less refund from working capital adjustment (50,000)
Repayment of debt 418,775
Redeemable non-controlling interest 3,000,000
$ 6,503,915
The following table represents the purchase price allocation based on the estimated fair values of the assets
Current assets (including cash of $21,423) $ 338,577
Current liabilities (529,702)
Property and equipment, including:
Fiber network 3,456,024
Computer equipment 200,000
Furniture and equipment 5,000
Vehicles 92,000
Leasehold improvements 50,000
Intangible assets, including:
Network rights 692,000
Customer equipment and installations 68,000
Goodwill 2,132,016
Net assets acquired $ 6,503,915
The goodwill recorded on the acquisition is expected to be deductible for tax purposes.
The fair value of current assets acquired includes accounts receivable with a fair value of $0.2 million. All
accounts receivable acquired at acquisition are expected to be collectable.
During the year ended December 31, 2015 this acquisition resulted in additional revenues of $3.3 million. The
acquisition had no significant impact on net income for the year ended December 31, 2015.
The Company acquired new classes of assets in this acquisition, namely fiber network and vehicles. The
Company has accordingly, in connection with its depreciation policies, added additional disclosure in note 2 (e) above.
4. Other assets:
Other assets are comprised of the following:
Year ended
December 31,
2015
Year ended
December
31, 2014
Amounts in escrow advanced to acquire a controlling ownership interest in
Ting Virginia, LLC (see note 3) $ — $ 3,125,000
Amounts advanced to the joint venture which was terminated in February
2015 (see note 14) — 5,074,000
$ — $ 8,199,000
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