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2014 and 2013 Acquisitions
In September 2014, we acquired Consilience Software, Inc. (Consilience) for approximately $25 in cash.
Consilience provides case management and workflow automation software solutions to the public sector.
Consilience's proprietary Maven Case Management software system uses data and process analytics to help
government agencies extract more value from their information. The intelligent case management system
automates workflows for document- and labor-intensive processes and integrates previously siloed legacy systems
for accelerated decision-making.
In May 2014, we acquired ISG Holdings, Inc. (ISG) for approximately $225 in cash. The acquisition of ISG
enhances our Services segment by providing a comprehensive workers' compensation suite of offerings to the
property and casualty sector. In addition, the acquisition expands our services to property and casualty insurance
carriers, third-party administrators, managed care services providers, governments and self-administered employers
who require comprehensive reviews of medical bills and implementation of care management plans stemming from
workers' compensation claims.
In January 2014, we acquired Invoco Holding GmbH (Invoco), a German company, for approximately $54 (€40
million) in cash. The acquisition of Invoco expands our European customer care services and provides our global
customers immediate access to German-language customer care services and provides Invoco's existing
customers access to our broad business process outsourcing capabilities.
In April 2013, we acquired Florida based Zeno Office Solutions, Inc. (Zeno), a provider of print and IT solutions to
small and mid-sized businesses in the Southeast, for approximately $59 in cash. This acquisition furthers our
coverage in Florida, building on our strategy of expanding our network of locally-based companies focused on
customers' requirements to improve their performance through efficiencies.
In February 2013, we acquired Impika, a leader in the design, manufacture and sale of production inkjet printing
solutions used for industrial, commercial, security, label and package printing for approximately $53 in cash. Impika,
which is based in Aubagne, France, offers a portfolio of aqueous (water-based) inkjet presses based on proprietary
technology. Through the addition of Impika's aqueous technology to our offerings, we go to market with the
industry's broadest range of digital presses, strengthening our leadership in digital color production printing.
Our Services segment also acquired one additional business in 2014 and three in 2013 for $2 and $31, respectively,
in cash, primarily related to customer care and software to support our BPO service offerings. Our Document
Technology segment acquired two businesses in 2014 and one in 2013 for approximately $34 and $12 in cash,
respectively, which expanded our distribution capability of products and services in North America.
2014 and 2013 Summary
All of our 2014 and 2013 acquisitions resulted in 100% ownership of the acquired companies. The operating results
of the 2014 and 2013 acquisitions described above were not material to our financial statements and were included
within our results from the respective acquisition dates. The 2014 acquisitions noted above are included in our
Services segment while the 2013 acquisition of Zeno and Impika were included within our Document Technology
segment. The purchase prices for all acquisitions were primarily allocated to intangible assets and goodwill based
on third-party valuations and management's estimates. Refer to Note 10 - Goodwill and Intangible Assets, Net for
additional information. Our 2014 acquisitions contributed aggregate revenues from their respective acquisition dates
of approximately $214 and $132 to our 2015 and 2014 total revenues, respectively. Our 2013 acquisitions
contributed aggregate revenues from their respective acquisition dates of approximately $87, $84 and $56 to our
2015, 2014 and 2013 total revenues, respectively.
Contingent Consideration
In connection with certain acquisitions, we are obligated to make contingent payments if specified contractual
performance targets are achieved. Contingent consideration obligations are recorded at their respective fair value.
As of December 31, 2015, the maximum aggregate amount of outstanding contingent obligations to former owners
of acquired entities was approximately $31, of which $25 was accrued representing the estimated fair value of this
obligation.
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