Business Acquisitions

6 Months Ended

Feb. 29, 2012

Business Acquisitions [Abstract]

Business Acquisitions

Note 12. Business Acquisitions

On December 1, 2011, the Company completed its acquisition of Telmar by acquiring 100% of the issued and outstanding common shares of Telmar for approximately $132.2 million in cash, which remains subject to adjustment based on a review of the actual net assets and expenses of Telmar as of the closing date. Telmar is a global provider of services and solutions for network service providers and enterprise and original equipment manufacturers. The acquisition of Telmar is expected to enhance the Company's position in the telecommunications manufacturing and reverse logistics sector.

The acquisition of Telmar has been accounted for as a business combination using the acquisition method of accounting. Assets acquired of $182.0 million, including $60.7 million in goodwill and $49.9 million in definite lived intangible assets, and liabilities assumed of $49.8 million were recorded at their estimated fair values as of the acquisition date. The Company is in the process of finalizing its valuation of certain intangible and tangible assets and deferred tax assets and deferred tax liabilities, resulting from the Telmar acquisition. The preliminary estimates and measurements are, therefore, subject to change. The Company expects to receive during the third quarter of fiscal year 2012 the remaining information necessary to finalize the fair value of the net assets acquired.

The excess of the purchase price over the fair value of the acquired assets and assumed liabilities of $60.7 million was recorded to goodwill and was assigned fully to the DMS operating segment. None of the goodwill is currently expected to be deductible for income tax purposes.