BT 2006 Annual Report Download - page 87

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12. ACQUISITIONS continued
Year ended 31 March 2005
Infonet
d
£m
Albacom
e
£m
Other
f
£m
Total
£m
Fair value of consideration 520 131 19 670
Less: fair value of net assets acquired 334 122 9 465
Goodwill arising 186 9 10 205
Consideration:
Cash 520 93 23 636
Deferred consideration – 38 1 39
Total 520 131 24 675
The outflow of cash and cash equivalents is as follows:
Cash consideration 520 93 23 636
Less: cash acquired 205 – 5 210
315 93 18 426
Year ended 31 March 2006
a
Atlanet
On 28 February 2006 the group acquired 100% of the issued share capital of Atlanet SpA (Atlanet) for total consideration of
£65 million, including deferred consideration of £7 million and acquisition costs of £1 million. The net assets acquired in the
transaction and the goodwill arising were as follows:
Book and
fair value
£m
Intangible assets 2
Property, plant and equipment 25
Receivables 46
Cash and cash equivalents 5
Payables (43)
Group’s share of original book value and fair value of net assets 35
Goodwill 30
Total consideration 65
The fair value adjustments relating to the acquisition of Atlanet are provisional due to the timing of the transaction and will be
finalised during the 2007 financial year.
From the date of acquisition, Atlanet has contributed to the group’s results revenue of £7 million and a net loss of £1 million. If
the acquisition had occurred on 1 April 2005, the group’s revenue would have been higher by £90 million, and profit for the year
would have been lower by £1 million (year ended 31 March 2005, £112 million higher and £1 million lower, respectively). The
residual excess over the net assets acquired is recognised as goodwill. Goodwill comprises principally the assembled workforce,
expected cost savings and synergies.
b
Radianz
On 29 April 2005, the group acquired 100% of the issued share capital of Radianz Limited (Radianz) for total consideration of
£143 million, including acquisition costs of £5 million. The net assets acquired in the transaction, and the goodwill arising, were as
follows:
Fair value
Book value adjustments Fair value
£m £m £m
Intangible assets – 22 22
Property, plant and equipment 55 (4) 51
Receivables 40 – 40
Cash and cash equivalents 44 – 44
Payables (53) – (53)
Group’s share of original book value and fair value of net assets 86 18 104
Goodwill 39
Total consideration 143
From the date of acquisition Radianz has contributed to the group’s results £60 million of revenue and a net loss of £30 million. If
the acquisition had occurred on 1 April 2005, the group’s revenue and profit after tax would have been higher by £4 million and
£nil, respectively (year ended 31 March 2005, £38 million and £1 million, respectively).
Notes to the consolidated financial statements BT Group plc Annual Report and Form 20-F 2006 85