Acquisitions (Note)

12 Months Ended

Dec. 31, 2019

In accordance with ASC 805, the Company allocates the purchase price of its acquisitions to the tangible assets, liabilities and intangible assets acquired based on fair values. Any excess purchase price over those fair values is recorded as goodwill. The fair value assigned to intangible assets acquired is supported by valuations using estimates and assumptions provided by management. For certain large acquisitions, management engages an appraiser to assist in the valuation process.

2019 Acquisitions

On November 30, 2019, the Company completed the acquisition of a North American based ATM operator with approximately 1,800 ATMs.

The purchase price was $92.5 million in cash. Approximately $10.1 million of the cash consideration was placed in escrow accounts to satisfy indemnification and working capital obligations of the seller, pursuant to the terms of the purchase agreement.

The purchase price was preliminarily allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the date of acquisition. The acquisition has been accounted for as business combinations in accordance with U.S. GAAP and the results of operations have been included from the date of acquisition in the EFT Processing Segment. The historical revenue and earnings were not significant for the purpose of presenting pro forma information for the current or prior-year periods.

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date.



(in thousands)	As of November 30, 2019
Cash and cash equivalents	$	5,325
Trade accounts receivable	2,167
Other current assets	798
Property and equipment	16,542
Intangible assets	39,000
Total assets acquired	$	63,832

Trade accounts payable	$	(6,790	)
Accrued expenses and other current liabilities	(80		)
Total liabilities assumed	$	(6,870	)

Goodwill	35,540

Net assets acquired	$	92,502

The Company acquired customer relationship intangible assets with a preliminary fair value of $39.0 million, which are being amortized on a straight-line basis over 20 years.

Goodwill, with a preliminary value of $35.5 million, arising from the acquisition was included in the EFT Processing Segment and was attributable to expected growth opportunities in the United States. Goodwill and intangible assets associated with this acquisition are deductible for tax purposes.

Other

The Company completed three acquisitions for immaterial amounts.

2018 Acquisitions

The Company completed the acquisitions of two small European businesses for an immaterial amount of cash consideration, completing one acquisition in the first quarter of 2018 and completing the other acquisition in the second quarter of 2018. The acquisitions have been accounted for as business combinations in accordance with U.S. GAAP and the results of operations have been included from the respective dates of acquisition in the EFT Processing Segment.