First Data 2009 Annual Report Download - page 123

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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,
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 Retail and Alliance 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 Retail and Alliance 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 Retail and Alliance Services segment.
In March 2007, the Company acquired Intelligent Results, a customer data analytics and decision
management software provider. Intelligent Results is reported as part of All Other and Corporate.
In March 2007, the Company acquired Instant Cash, a debit card and ATM payment processing service
provider for community banks, credit unions, thrifts and non-financial institutions. The purchase price allocation
resulted in identifiable intangible assets of $54.3 million, which were being amortized over three to 10 years, and
goodwill of $70.2 million. Instant Cash is reported as part of the Financial Services segment.
In June 2007, the Company acquired FundsXpress, a provider of online banking and bill payment services.
The purchase price allocation resulted in identifiable intangible assets of $45.0 million, which were being
amortized over eight years, and goodwill of $88.7 million. FundsXpress is reported as part of the Financial
Services segment.
In August 2007, the Company acquired First Data Polska, a merchant acquirer and card issuer processor in
Poland. The purchase price allocation resulted in identifiable intangible assets of $98.6 million, which were being
amortized over eight years, and goodwill of $184.3 million. First Data Polska is reported as part of the
International segment.
The aggregate cash paid, net of cash acquired, for acquisitions during the predecessor period from
January 1, 2007 through September 24, 2007 was approximately $690 million. The valuations of the identifiable
intangible assets of the businesses acquired during the 2007 predecessor period were contemplated in the
valuation associated with the merger discussed in Note 2.
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