BT 2010 Annual Report Download - page 128

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FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
126 BT GROUP PLC ANNUAL REPORT & FORM 20-F
28. Acquisitions
There were no acquisitions made in 2010. A summary of the acquisitions made in 2009 is set out below.
BT
Global Services BT Retail Other Total
Year ended 31 March 2009 £m £m £m £m
Fair value of consideration 13 98 75 186
Less: fair value of net assets acquired 3 24 28 55
Goodwill arising 10 74 47 131
Consideration:
Cash 13 98 65 176
Deferred consideration – – 10 10
Total 13 98 75 186
The outflow of cash and cash equivalents was as follows:
Cash consideration 13 98 65 176
Less: cash acquired 1359
12 95 60 167
BT Global Services
During 2009 the group acquired 100% of Stemmer GmbH and SND GmbH. The purchase consideration was £13m. The net assets acquired
and the goodwill arising were as follows:
Fair value
Book value adjustments Fair value
£m £m £m
Receivables 6–6
Cash and cash equivalents 1–1
Payables (4) – (4)
Net assets acquired 3–3
Goodwill 10
Total consideration 13
During 2010 the determination of fair values has been finalised. No adjustments have been made to the balances previously reported.
BT Retail
During 2009 the group acquired 100% of the issued share capital of Wire One Holdings Inc and Ufindus Ltd for a total consideration of
£98m. The combined net assets acquired in these transactions and the goodwill arising were as follows:
Fair value
Book value adjustments Fair value
£m £m £m
Intangible assets 22123
Property, plant and equipment 2–2
Receivables 20 (1) 19
Cash and cash equivalents 3–3
Payables (22) (1) (23)
Net assets acquired 51924
Goodwill 74
Total consideration 98
Intangible assets recognised in respect of these acquisitions comprised customer relationships, brand names and proprietary technology.
Goodwill arising on these acquisitions principally related to anticipated cost and revenue synergies and the assembled workforce. During
2010 the determination of fair values has been finalised. No adjustments have been made to the balances previously reported.