BUSINESS ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below reflects the Company's estimates of the acquisition date fair values of the purchase consideration, assets acquired, and liabilities assumed for its material 2018 acquisition (amounts in millions):



	Interoute
Purchase Price
Cash paid at closing	$	2,239.3
Purchase consideration	$	2,239.3

Purchase Price Allocation
Assets acquired:
Cash	$	66.1
Accounts receivable	86.3
Prepaid expenses and other current assets	51.3
Property and equipment	1,435.9
Other assets	24.5
Intangible assets - customer lists	171.5
Intangible assets - tradename	2.1
Intangible assets - other	15.4
Deferred tax assets	35.9
Goodwill	1,040.6
Total assets acquired	2,929.6

Liabilities assumed:
Accounts payable	(75.5		)
Accrued expenses and other current liabilities	(115.2		)
Capital leases ⁽¹⁾	(42.4		)
Debt	(27.7		)
Deferred revenue	(242.7		)
Deferred tax liabilities	(148.8		)
Other long-term liabilities	(38.0		)
Total liabilities assumed	(690.3		)
Net assets acquired	$	2,239.3
(1) Includes $38.8 million of assumed long-term building leases.



	Hibernia			Global Capacity
Purchase Price
Cash paid at closing	$	529.6		$	104.0
Common stock ⁽¹⁾	86.1			53.6
Purchase consideration	$	615.7		$	157.6

Purchase Price Allocation
Assets acquired:
Current assets	$	42.6		$	25.7
Property and equipment	432.5			34.4
Other assets	0.1			2.5
Intangible assets - customer lists	166.7			41.2
Intangible assets - tradename	0.7			—
Intangible assets - other	—			4.6
Goodwill	201.1			88.8
Total assets acquired	843.7			197.2

Liabilities assumed:
Accounts payable
Current liabilities	(40.6		)	(24.1		)
Deferred revenue	(163.3		)	(15.5		)
Deferred tax liabilities	(24.1		)	—
Total liabilities assumed	(228.0		)	(39.6		)
Net assets acquired	$	615.7		$	157.6
(1) Common stock fair value for Hibernia equals the closing share price on the acquisition date of $27.80 less a discount for lack of marketability. Common stock fair value for Global Capacity equals the closing share price on the acquisition date of $30.85 less a discount for lack of marketability.

Business Acquisition, Pro Forma Information

The pro forma results presented below include the effects of the Company’s material 2018 acquisition as if the acquisition occurred on January 1, 2018. The pro forma net loss for the year ended December 31, 2018 includes adjustments to revenue and cost of telecommunications services to eliminate inter-company activity, adjustments to deferred revenue and deferred cost from the acquired companies, and IFRS to US GAAP adjustments for Interoute. The pro forma adjustments are based on historically reported transactions by the acquired companies. The pro forma results do not include any anticipated synergies or other expected benefits of the acquisitions. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of January 1, 2018 (amounts in millions, except per share data).



	Year Ended December 31,
	2018
Revenue	$	1,836.0
Net loss	$	(91.1	)

Loss per share:
Basic	$	(1.80	)
Diluted	$	(1.80	)

Denominator for basic EPS – weighted average shares	50,718,279
Denominator for diluted EPS – weighted average shares	50,718,279