TomTom 2009 Annual Report Download - page 88

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86 / NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF TOMTOM NV
30. BUSINESS COMBINATIONS
2009
In the fourth quarter of 2009, TomTom acquired 100% shares of ilocal International B.V. and ilocal Holding B.V.
(hereafter referred to jointly as ‘ilocal’) for a cash consideration of €15.1 million.
ilocal is a business listing company based in Amersfoort, the Netherlands. ilocal owns a database of categorised
and geo referenced business listings in the Netherlands (www.ilocal.nl) and Belgium (www.ilocal.be) and has
technologies in place to maintain the quality and freshness of this database. This technology will complement
TomTom’s existing in-house and third party sourced Points of Interest datasets which in turn will enrich the
quality of our navigation content.
The fair value of the net assets acquired amounted to €15.1 million which comprise mainly of: intangible assets
(€19.2 million), property, plant & equipment – PP&E (€0.4 million), deferred tax assets (€4.9 million), deferred
tax liabilities (€4.9 million), trade debtors (€0.4 million), cash and cash equivalents (€0.2 million), trade payables
(€0.9 million) and other liabilities (€4.2 million). The fair value of PP&E, trade debtors, cash, trade payables and
other liabilities equal their previous carrying value.
The acquired business contributed net revenue of €0.3 million and a net loss of €0.6 million to the group for
the period from 1 December 2009 to 31 December 2009. Should we have accounted for the acquisition from
1 January 2009, the group revenue and net result would have been €1,482.8 million and €80.0 million respectively.
2008
In June 2008, the group acquired the remaining shares of its associate Tele Atlas, a global provider of digital map
technology. The total purchase consideration paid for Tele Atlas amounted to € 2,869 million and the fair value of
the net assets acquired amounted to €966 million, which comprise mainly of intangible assets (databases, tools,
customer relationships and brand name) of €957 million, cash and cash equivalents of €234 million, deferred tax
liability of €262 million and other liabilities of €104 million. Goodwill resulting from this acquisition amounted to
€1,902 million at acquisition date.
The acquired business contributed €121 million in revenue and net profit of €5.9 million (excluding impairment)
for the period between 1 June 2008 and 31 December 2008. Should we have accounted for the acquisition from
1 January 2008, the group revenue and operating loss for 2008 would have been €1,749 million and €820 million
respectively.
31. RELATED PARTY TRANSACTIONS
In the normal course of business, TomTom purchases services from Tele Atlas. These transactions are conducted
on an arm’s length basis with terms that have not changed compared with the terms that applied before we
acquired our interest in Tele Atlas. The total amount of related party transactions with Tele Atlas for the period
between 1 January 2008 and 31 May 2008 amounted to €30.8 million. Refer to note 7 for transactions with key
management personnel.
32. AUDITORS REMUNERATION
The total remuneration to Deloitte for the statutory audit of 2009 for TomTom group amounted to €475,000 (2008:
€546,000). The total service fees paid to the Deloitte network amounted to €1,631,000 (2008: €1,653,000). Included
in the total remuneration is an amount of €985,000 (2008: €940,000) invoiced by Deloitte Accountants B.V. Details
of the audit, audit related and non audit fees paid to Deloitte can be found in the Supervisory Board report.