BT 2007 Annual Report Download - page 117
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28. ACQUISITIONS continued
Year ended 31 March 2006
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. At 31 March 2006, the fair value of
Atlanet’s net assets were determined on a provisional basis. During the 2007 financial year the determination of fair value has been
finalised and adjustments have been made to the balances previously reported. Prior year balances have not been restated as the
amount of the adjustments is not significant to the group. The net assets acquired in the transaction and the goodwill arising were
as follows:
Book and fair value,
as previously reported
Fair value
adjustments
Fair value
£m
Intangible assets 2 (2) –
Property, plant and equipment 25 – 25
Receivables 46 (6) 40
Cash and cash equivalents 5–5
Payables (43) (6) (49)
Net assets acquired 35 (14) 21
Goodwill 44
Total consideration 65
The residual excess over the net assets acquired is recognised as goodwill. Goodwill comprises principally the anticipated cost
synergies and savings that are forecast to arise subsequent to the acquisition.
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 –2222
Property, plant and equipment 55 (4) 51
Receivables 40 – 40
Cash and cash equivalents 44 – 44
Payables (53) – (53)
Net assets acquired 86 18 104
Goodwill 39
Total consideration 143
Intangible assets, comprising a brand, customer lists and customer relationships, were recognised at their respective fair values. The
residual excess over the net assets acquired is recognised as goodwill. Goodwill comprises principally the assembled work force,
expected cost savings and synergies.
Other
During the year ended 31 March 2006 the group acquired a number of other smaller subsidiary undertakings and businesses
including principally SkyNet Systems Limited, the CARA Group and Total Network Solutions Limited. The combined net assets and
goodwill arising in respect of these acquisitions were as follows:
Book and
fair value
£m
Property, plant and equipment 5
Inventories 4
Receivables 26
Cash and cash equivalents 11
Payables (29)
Net assets acquired 17
Goodwill 52
Total consideration 69
Consolidated financial statements Notes to the consolidated financial statements
116 BT Group plc Annual Report & Form 20-F