Annual report pursuant to Section 13 and 15(d)

ACQUISITIONS AND INVESTMENTS

v2.4.1.9
ACQUISITIONS AND INVESTMENTS
 12 Months Ended
Dec. 31, 2014
Business Combinations [Abstract]  
ACQUISITIONS AND INVESTMENTS
ACQUISITIONS AND INVESTMENTS
 
2014 Acquisitions and Investments.   To further broaden our product offerings, we made two acquisitions during 2014.  During the first quarter of 2014, we acquired TDX, a data, technology and services company in the United Kingdom that specializes in debt collections and recovery management through the use of analytics, data exchanges and technology platforms. It was included as part of our International and USIS operating segments. During the first quarter of 2014, we also completed the acquisition of Forseva, a provider of end-to-end, cloud-based credit management software solutions, that was included as part of our USIS operating segment.  The total purchase price of these acquisitions was $338.8 million.   

2013 Acquisitions and Investments.   To further broaden our product offerings, we made several acquisitions during 2013.  During the third quarter of 2013, we acquired TrustedID, a direct-to-consumer identity protection business that is included as part of our North America Personal Solutions business unit. During the fourth quarter of 2013, we also completed two acquisitions in Paraguay and Mexico in the Latin America region of our International segment.  The total purchase price of these acquisitions was $98.8 million.    
 
2012 Acquisitions and Investments.   On December 28, 2012, as a part of our long-term growth strategy of expanding our USIS business, we acquired certain credit services business assets and operations of Computer Sciences Corporation for $1 billion. The results of this acquisition have been included in our USIS operating segment subsequent to the acquisition and were not material for 2012.
 
We financed this purchase with available cash, borrowings under our CP Program, and the issuance in December 2012 of 3.30%, ten-year unsecured Senior Notes. The 3.30% Senior Notes are further described in Note 6 of the Notes to the Consolidated Financial Statements.
 
To further broaden our product offerings, during the twelve months ended December 31, 2012, we completed smaller acquisitions of information services businesses in the European and Latin American regions of our International segment totaling $16.5 million. The results of these acquisitions have been included in our operating results subsequent to the date of acquisition and were not material for 2012. 

Purchase Price Allocation.   The following table summarizes the estimated fair value of the net assets acquired and the liabilities assumed at the acquisition dates.
 
 
December 31,
 
2014
 
2013
 
(In millions)
Current assets
$
39.1

 
$
12.9

Property and equipment
3.6

 
1.4

Other assets
—

 
5.9

Identifiable intangible assets (1)
118.1

 
46.4

Goodwill (2)
240.7

 
55.3

Total assets acquired
401.5

 
121.9

Total liabilities assumed
(62.7
)
 
(19.9
)
Non-controlling interest
—

 
(3.2
)
Net assets acquired
$
338.8

 
$
98.8

 
(1)
Identifiable intangible assets are further disaggregated in the following table.

(2)
Of the goodwill resulting from 2014 and 2013 acquisitions, $0 million and $1.2 million, respectively, is tax deductible.

The primary reasons the purchase price of these acquisitions 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 geographies, cost savings from the elimination of duplicative activities, and the acquisition of an assembled workforce that are not recognized as assets apart from goodwill.
 
 
December 31,
 
 
2014
 
2013
Intangible asset category
 
Fair value
 
Weighted-average useful life
 
Fair value
 
Weighted-average useful life
 
 
(In millions)
 
(In years)
 
(In millions)
 
(In years)
Customer relationships
 
$
72.1

 
9.7
 
$
27.6

 
8.3
Acquired software and technology
 
21.7

 
4.6
 
4.2

 
4.3
Purchased data files
 
—

 
0
 
8.4

 
5.0
Non-compete agreements
 
12.8

 
2.4
 
3.1

 
4.0
Trade names and other intangible assets
 
11.5

 
9.7
 
3.1

 
6.3
Total acquired intangibles
 
$
118.1

 
8.0
 
$
46.4

 
6.9

 
The 2014 acquisitions did not have a material impact on the Company’s Consolidated Statements of Income. The impact of the 2014 acquisitions would not have significantly changed our Consolidated Statements of Income if they had occurred at the beginning of the earliest year presented.