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Up My Info!, a NY-based company focusing primarily on backup supporting small to mid-sized businesses in a variety of industries around the world; (j) certain assets of Web24, a
Melbourne, Australia- based company which offers domain name, web hosting, dedicated or shared servers and related services primarily to small and mid-sized businesses in
Australia and elsewhere; (k) all of the units of Excel Micro, a Philadelphia-based cloud email security and archiving solutions; (l) all of the units of Scene LLC (“Ookla”), a
Washington-based leading provider of broadband and mobile speed testing; (m) all of the shares of NCSG Holding AB (“Stay Secure”), a Swedish-based provider of e-mail and web
security services; (n) all of the shares of Comendo A/S, a Danish-based provider of e-mail security; (o) certain assets of TestudoData LLC, a Nevada-based provider of e-mail
security; and (p) certain other immaterial acquisitions of fax, online data backup and application businesses.
The consolidated statement of income, since the date of each acquisition, and balance sheet, as of December 31, 2014, reflect the results of operations of all 2014
acquisitions. For the year ended December 31, 2014 , these acquisitions contributed $51.9 million to the Company's revenues. Net income contributed by these acquisitions was not
separately identifiable due to j2 Global's integration activities. Total consideration for these transactions was $300.2 million , net of cash acquired and assumed liabilities and subject
to certain post-closing adjustments.
The following table summarizes the allocation of the purchase consideration as follows (in thousands):
Assets and Liabilities Valuation
Accounts receivable $ 18,024
Property and equipment 10,022
Other assets 5,500
Deferred tax asset 419
Software
9,836
Trade name 28,192
Customer relationship 98,498
Other intangibles 2,121
Goodwill 184,837
Deferred revenue
(29,182)
Deferred tax liability
(12,328)
Other accrued liabilities
(14,338)
Capital lease
(1,361)
Total $ 300,240
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and represents intangible assets that do
not qualify for separate recognition. Goodwill recognized associated with these acquisitions during the year ended December 31, 2014 is $184.8 million , of which $89.4 million is
expected to be deductible for income tax purposes.
Pro Forma Financial Information for 2014 Acquisitions
The following unaudited pro forma supplemental information is based on estimates and assumptions, which j2 Global believes are reasonable. However, this information is
not necessarily indicative of the Company's consolidated financial position or results of income in future periods or the results that actually would have been realized had j2 Global
and the acquired businesses been combined companies during the period presented. These pro forma results exclude any savings or synergies that would have resulted from these
business acquisitions had they occurred on January 1, 2013 and do not take into consideration the exiting of any acquired lines of business. This unaudited pro forma supplemental
information includes incremental intangible asset amortization and other charges as a result of the acquisitions, net of the related tax effects.
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