Acquisitions

6 Months Ended

Jun. 30, 2011

Acquisitions

Acquisitions

2. ACQUISITIONS

Century Casino in Calgary

On January 13, 2010, the Company, through Century Casinos Europe ("CCE"), acquired 100% of the issued and outstanding shares of Frank Sisson's Silver Dollar Ltd. ("FSSD") and 100% of the issued and outstanding shares of EGC Properties Ltd. ("EGC"). FSSD and EGC collectively owned and operated the Silver Dollar Casino and related land in Calgary, Alberta, Canada. In November 2010, we rebranded the casino under the name Century Casino in Calgary.

The total consideration for the transaction was $11.5 million, which consisted of a $10.7 million purchase price plus a net working capital adjustment of $0.8 million. CCE paid $1.0 million on the acquisition on November 6, 2009. On January 13, 2010, CCE paid the remaining $10.5 million. The purchase price was paid from cash on hand. There was no contingent consideration for the transaction.

The Company incurred acquisition costs of approximately $0.3 million. The majority of these costs, which include legal, accounting and valuation fees, were recorded as general and administrative expenses during the fourth quarter of 2009.

The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values on January 13, 2010, the date of acquisition:

Amounts in thousands
Acquisition Date	January 13, 2010
Cash	$	1,193
Accounts receivable		202
Prepaid expenses		207
Inventory		56
Property and equipment		10,977
Deferred tax asset, net		690
Total assets acquired		13,325
Accounts payable and accrued liabilities		429
Accrued payroll		222
Total liabilities assumed		651
Net assets		12,674
Excess of net assets over purchase consideration (bargain purchase)		1,180
Purchase consideration		11,494
Cash acquired		(1,193	)
Cash deposit made in 2009		(1,000	)
Net cash paid in 2010	$	9,301

During the year ended December 31, 2010, the Company recognized a $1.2 million gain on the bargain purchase associated with the Century Casino in Calgary acquisition. The bargain purchase was the result of the fair market value of the assets acquired exceeding the purchase price. Pro forma results of operations for 2010 have not been presented, as the impact on consolidated financial results would not have been material.