First Data 2008 Annual Report Download - page 130
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FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The aggregate cash paid for acquisitions during the year ended December 31, 2008 was approximately $267 million. The aggregate preliminary
purchase price allocation associated with acquisitions during 2008 resulted in identifiable intangible assets and goodwill as follows:
Preliminary
purchase price
allocation
(in millions)
Weighted-average
useful life
Software $ 59.4 4 years
Customer relationships 1,049.5 9 years
Trade names 38.2 15 years
Other intangibles 6.3 8 years
Total identifiable intangibles $ 1,153.4 9 years
Goodwill (a) $ 820.1
(a) Approximately $439 million of goodwill resulting from 2008 acquisitions is expected to be deductible for tax purposes.
Additional Information
The pro forma impact of all 2008 acquisitions on net income was not material.
2008 Dispositions
In July 2008, the Company sold its subsidiary Active Business Services Ltd. which was reported as part of the International segment.
In July 2008, the Company sold its interest in Early Warning Services which had been accounted for under the equity method and was reported in All
Other and Corporate.
In October 2008, the Company sold its subsidiary Peace which was reported as part of the Financial Services segment.
On December 31, 2008, the Company sold 12.5% of the membership interests in their merchant alliance joint venture, Wells Fargo Merchant Services,
LLC ("WFMS"), to Wells Fargo & Company ("WFB"), for cash consideration totaling $222 million. This resulted in the Company owning 40% of the
merchant alliance. FDC deconsolidated the WFMS balance sheet as of December 31, 2008 and is reflecting its remaining ownership interest as an equity
method investment in the Merchant Services segment. The Company recognized a pretax loss of $3.8 million resulting from the transaction.
2007 Acquisitions
Predecessor
In January 2007, the Company acquired Size Technologies, a provider of loyalty, stored value and transaction marketing solutions. Size Technologies is
reported as part of the Prepaid Services segment.
In February 2007, the Company acquired the assets of Datawire, an internet-based transaction delivery company. Datawire is reported as part of the
Merchant Services segment.
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