Quarterly report pursuant to Section 13 or 15(d)

TDX GROUP ACQUISITION

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TDX GROUP ACQUISITION
 3 Months Ended
Mar. 31, 2014
Business Combinations [Abstract]  
TDX GROUP ACQUISITION
2. TDX GROUP ACQUISITION
 
On January 15, 2014, we acquired 100% of the stock of TDX Group, a data and technology company in the United Kingdom that specializes in helping lenders and creditors optimize collection and recovery performance through the use of analytics, data exchanges and technology platforms for $322.8 million. This acquisition will expand our capabilities within the collections market as well as other markets. The results of this acquisition have been included in our International operating segment for the period subsequent to the acquisition.
 
Purchase Price Allocation.   The following table summarizes the estimated fair value of the net assets acquired and the liabilities assumed at the acquisition date. The allocations are considered final, except for the resolution of certain contingencies all of which existed at the acquisition date, primarily related to the finalization of working capital as well as sales tax exposures and income tax accounts, which will be resolved when final returns are filed related to the acquired entities. Estimates for these items have been included in the purchase price allocations and will be finalized prior to the one year anniversary date of the acquisition.
 
 
 
March 31,
 
 
 
2014
 
 
 
(In millions)
 
Current assets
 
$
12.6
 
Property and equipment
 
 
3.6
 
Identifiable intangible assets (1)
 
 
111.9
 
Goodwill (2)
 
 
230.7
 
Total assets acquired
 
 
358.8
 
Total liabilities assumed
 
 
(36.0)
 
Net assets acquired
 
$
322.8
 
 
 
(1)
   Identifiable intangible assets are further disaggregated in the table below.
 
 
(2)
    None of the goodwill resulting from the 2014 TDX Group acquisition is tax deductible.
 
The primary reasons the purchase price of the acquisition exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, were expanded growth opportunities from new or enhanced product offerings and the acquisition of an assembled workforce that are not recognized as assets apart from goodwill.
 
Intangible asset category
 
Fair value
Weighted-
average
remaining
useful life
 
 
 
(in millions)
 
 
(in years)
 
Customer relationships
 
$
69.5
 
 
10.0
 
Technology
 
 
18.7
 
 
5.0
 
Non-compete agreements
 
 
12.6
 
 
2.4
 
Trade names
 
 
11.1
 
 
10.0
 
Total acquired intangibles
 
$
111.9