Under Armour 2014 Annual Report Download - page 88

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1
8. Subse
q
uent Events
Acquisitions
On January
5
, 201
5
, the Company acquired 100% of the outstanding equity of Endomondo ApS, a
Denmark-based connected fitness company for
$
85 million, subject to adjustment for working capital. I
n
connection with this acquisition, the Company incurred acquisition related expenses of approximatel
y
$
0.8 million during the year ended December 31, 2014. These expenses were included in selling, general and
administrative expenses on the consolidated statements of income. The operating results for this acquisition wil
l
be included in the Company’s consolidated statements of income from the date of acquisition. The Company i
s
currently in the process of assessing the fair value of the assets acquired and liabilities assumed, which i
s
expected to be final during the first quarter of 201
5
.
On February 3, 201
5
, the Company entered into an agreement to acquire MyFitnessPal, Inc.
(“MyFitnessPal”). The purchase price for the acquisition will be
$
475 million in cash, which will be adjusted to
r
eflect that the acquisition of MyFitnessPal by the Company at the closing on a debt free basis wit
h
MyFitnessPal’s transaction expenses borne by the sellers. In addition, the aggregate purchase price payable at th
e
closing is subject to an upward adjustment to reflect the amount of net cash held by MyFitnessPal at closing. Th
e
acquisition is currently expected to close during the first quarter of 201
5
, subject to the satisfaction of customar
y
closing conditions, including among others, regulatory approvals, the continuing accuracy of representations and
warranties and the execution of noncompetition agreements by certain key employee stockholders. Th
e
acquisition is expected to be funded through a combination of increased term loan borrowings, a draw on the
increased revolving credit facility and cash on hand
.
7
8