Business Acquisitions

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Business Acquisitions

4. BUSINESS ACQUISITIONS

VCP and AppointMaster

During the year ended December 31, 2021, we completed acquisitions of VCP, a leading platform in veterinary wellness plan administration, and AppointMaster, a provider of integrated communications solutions for veterinary practices, for 100% ownership in both entities for an aggregate purchase price of $85 million, including $4 million in common stock. These acquisitions are intended to provide our Customers with new tools to foster stronger relationships with their Animal Owner clients by delivering better business and healthcare outcomes. The allocation of the aggregate purchase price resulted in goodwill of $60 million and other intangible assets, including technology, of $31 million. The results of operations have been included in our North America segment since the acquisition dates. All acquisition expenses incurred were not material. Goodwill generated by Appointmaster is tax deductible whereas the goodwill generated by our acquisition of VCP is not tax-deductible. The transactions are not material business combinations or material to our consolidated financial statements individually or in the aggregate. Goodwill for VCP See Note 6 - Goodwill and Other Intangibles, Net.

Veterinary Study Groups

During the year ended December 31, 2020, we acquired an 80% interest in Veterinary Study Groups, Inc., which manages a family of more than 50 Veterinary Management Groups in the United States and Canada. The goodwill from this transaction is not deductible for tax purposes. The results of operations have been included in our North American segment since the acquisition date. This transaction is not a material business combination. The acquisition expenses incurred were not material. See Note 6 - Goodwill and Other Intangibles, Net and Note 19 - Redeemable Non-controlling Interests.

Other

We completed certain other acquisitions during the year ended December 31, 2020 which were immaterial to our consolidated financial statements individually and in the aggregate.