Western Union 2013 Annual Report Download - page 217

2013 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
107
4. Acquisitions
On November 7, 2011, the Company acquired the business-to-business payment business known as TGBP from Travelex
Holdings Limited for cash consideration of £596 million ($956.5 million), net of a final working capital adjustment which resulted
in a return of £15 million ($24.1 million) of purchase consideration in the third quarter of 2012. In connection with the July 5,
2011 purchase agreement, on May 4, 2012, the Company also acquired the French assets of TGBP for cash consideration of £3
million ($4.8 million) after receiving regulatory approval. For the year ended December 31, 2011, the Company incurred $20.7
million of costs associated with the closing of the TGBP acquisition. The results of operations for TGBP have been included in
the Company's consolidated financial statements from the date of acquisition.
On October 31, 2011 and April 20, 2011, the Company acquired the remaining 70% interests in European-based Finint S.r.l.
("Finint") and Angelo Costa S.r.l. ("Costa"), respectively, two of the Company's largest agents providing services in a number of
European countries. The Company previously held a 30% equity interest in each of these agents. As of the acquisition dates, the
Company no longer incurs commission costs for transactions related to Finint and Costa; rather the Company now pays commissions
to Finint and Costa subagents, resulting in lower overall commission expense. The Company's operating expenses include costs
attributable to Finint's and Costa's operations subsequent to the acquisition dates.
The Company acquired the remaining 70% interest in Finint for cash consideration of €99.6 million ($139.4 million). The
Company revalued its previous 30% equity interest to fair value of approximately $47.7 million on the acquisition date, resulting
in total value of $187.1 million. In conjunction with the revaluation, the Company recognized a gain of $20.5 million, recorded
in "Other income, net" in the Consolidated Statements of Income, for the amount by which the fair value of the 30% equity interest
exceeded its previous carrying value.
The Company acquired the remaining 70% interest in Costa for cash consideration of €95 million ($135.7 million). The
Company revalued its previous 30% equity interest to fair value of approximately $46.2 million on the acquisition date, resulting
in total value of $181.9 million. In conjunction with the revaluation, the Company recognized a gain of $29.4 million, recorded
in "Other income, net" in the Consolidated Statements of Income, for the amount by which the fair value of the 30% equity interest
exceeded its previous carrying value.