TomTom 2005 Annual Report Download - page 86

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86
22.฀Business฀combinations
Datafactory฀AG
During฀August฀2005,฀the฀Group฀acquired฀100%฀of฀the฀share฀capital฀of฀Datafactory฀AG,฀a฀company฀that฀offers฀an฀online฀
system฀for฀fleet฀management.฀The฀company฀currently฀operates฀in฀Germany.฀The฀acquired฀company฀contributed฀revenues฀
of฀

2.2฀million฀and฀a฀net฀profit฀of฀

0.4฀million฀to฀the฀Group฀for฀the฀period฀from฀25฀August฀2005฀to฀31฀December฀2005.฀
This฀transaction฀has฀been฀accounted฀for฀using฀the฀purchase฀method.
The฀assets฀and฀liabilities฀arising฀from฀the฀acquisition฀are฀as฀follows:
฀ Acquiree’s฀฀
฀ carrying฀ Fair
฀ amount฀ value
Net฀assets฀acquired:
(in฀
฀thousands)
Cash฀and฀cash฀equivalents฀ 1,178฀ 1,178
Property,฀plant฀and฀equipment฀ 135฀ 135
Intangible฀assets฀ 0฀ 12,720
Inventories฀ 325฀ 325
Receivables฀ 665฀ 665
Payables฀ -702฀ -702
Total฀ ฀ 14,321
Goodwill฀ ฀ 0
฀ ฀
Total฀purchase฀consideration฀ ฀
14,321
฀ ฀
Net฀cash฀outflow฀arising฀on฀acquisition:
Cash฀consideration฀paid฀ ฀ -7,587
Estimated฀earn฀out฀ ฀ -6,734
Cash฀and฀cash฀equivalents฀acquired฀ ฀ 1,178
฀ ฀
฀ ฀ -13,143
฀ ฀
Drivetech฀Inc.
During฀December฀2005,฀the฀Group฀acquired฀100%฀of฀the฀share฀capital฀of฀Drivetech฀for฀a฀price฀of฀
฀2.7฀million.฀
Drivetech฀is฀a฀company฀that฀develops฀navigation฀software฀for฀the฀Taiwanese฀market.฀The฀Group฀consolidated฀Drivetech฀
from฀December฀2005฀onwards.฀The฀transaction฀has฀been฀accounted฀for฀by฀the฀purchase฀method฀of฀accounting.
There฀were฀no฀acquisitions฀in฀the฀year฀ended฀December฀2004.฀For฀disclosure฀regarding฀the฀business฀combination฀that฀
took฀place฀after฀balance฀sheet฀date฀but฀before฀approval฀of฀these฀financial฀statements฀see฀note฀23.฀