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Acquisitions | 6 Months Ended
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Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract] |
Acquisitions | Acquisitions Pending Acquisition Acquisition of Entel Peru Data Center (the "Entel Peru Acquisition") On April 27, 2022, we signed an agreement with Entel to acquire a data center in Peru for a purchase price of PEN270.8 million, or approximately $70.7 million at the exchange rate in effect on that date. The acquisition of the data center in Peru is expected to close in the third quarter of 2022, pending the achievement of certain closing conditions, and will be accounted for as a separate transaction. After close of the acquisition, the operating results of the acquired data center will be reported in the Americas region. The Entel Peru Acquisition further supports our ongoing expansion to meet customer demand in the Latin American market. 2022 Acquisitions Acquisition of Entel Chile Data Centers (the "Entel Chile Acquisition") On May 2, 2022, we further expanded in Latin America through an acquisition of four data centers from Entel, a leading Chilean telecommunications provider, for a total purchase consideration of $638.3 million at the exchange rate in effect on that date. The Entel Chile Acquisition supports our ongoing expansion to meet customer demand in the Latin American market. Acquisition of MainOne (the "MainOne Acquisition") On April 1, 2022, we completed the acquisition of all outstanding shares of MainOne, consisting of four data centers as well as a subsea cable and terrestrial fiber network. We acquired MainOne and its assets for a total purchase consideration of $278.4 million. The MainOne Acquisition supports our desire to meet customer demand in the West African market. 2021 Acquisition Acquisition of GPX India (the "GPX India Acquisition") On September 1, 2021, we completed the acquisition of GPX India, representing two data centers in Mumbai, India, for a total purchase consideration of approximately INR12.5 billion, or $170.5 million at the exchange rate in effect on that date. The GPX India Acquisition supports our desire to meet customer demand in the Indian market. Purchase Price Allocation Each of the acquisitions noted above constitute a business under the accounting standard for business combinations and, therefore, were accounted for as business combinations using the acquisition method of accounting. Under this method, the total purchase price is allocated to the assets acquired and liabilities assumed measured at fair value on the date of acquisition. As of June 30, 2022, we had not completed the detailed valuation analysis to derive the fair value of assets acquired and liabilities assumed from the Entel Chile Acquisition and MainOne Acquisition, including property, plant and equipment, intangible assets and the related tax impacts; therefore, the purchase price allocation is based on provisional estimates and subject to continuing management analysis. A summary of the allocation of total purchase consideration is presented as follows (in thousands):
| GPX India |  | Entel Chile |  | MainOne
| Final |  | Provisional
Cash and cash equivalents | $ | 9,406 |  |  | $ | — |  |  | $ | 33,026 |
Accounts receivable | 4,399 |  |  | — |  |  | 9,431 |
Other current assets | 8,883 |  |  | 12,424 |  |  | 22,634 |
Property, plant and equipment | 88,130 |  |  | 81,132 |  |  | 237,988 |
Operating lease right-of-use assets | 62 |  |  | — |  |  | — |
Intangible assets | 15,408 |  |  | 153,489 |  |  | 54,800 |
Goodwill | 77,145 |  |  | 380,867 |  |  | 117,529 |
Deferred tax and other assets | 20 |  |  | 12,090 |  |  | 4,060 |
Total assets acquired | 203,453 |  |  | 640,002 |  |  | 479,468 |
Accounts payable and accrued liabilities | (1,566) |  |  | (195) |  |  | (19,790) |
Other current liabilities (1) | (478) |  |  | — |  |  | (13,061) |
Operating lease liabilities | (62) |  |  | — |  |  | — |
Finance lease liabilities | (20,565) |  |  | — |  |  | — |
Mortgage and loans payable | — |  |  | — |  |  | (25,944) |
Deferred tax and other liabilities (1) | (10,317) |  |  | (1,463) |  |  | (142,323) |
Net assets acquired | $ | 170,465 |  |  | $ | 638,344 |  |  | $ | 278,350 |
(1)For the MainOne Acquisition, other current liabilities includes $9.9 million of deferred revenue - current and the other liabilities includes $95.4 million of deferred revenue - non-current. Property, plant and equipment - The fair values of property, plant and equipment acquired from these three acquisitions were estimated by applying the cost approach, with the exception of land, which we estimated by applying the market approach. The key assumptions of the cost approach include replacement cost new, physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age. Intangible assets - The following table presents certain information on the acquired intangible assets (in thousands):
Intangible Assets |  | Fair Value |  | Estimated Useful Lives (Years) |  | Weighted-average Estimated Useful Lives (Years) |  | Discount Rate
GPX India: |  |  |  |  |  |  |  |
Customer relationships (1) |  | $ | 15,408 |  |  | 15.0 |  | 15.0 |  | 11.0 | %
Entel Chile: |  |  |  |  |  |  |  |
Customer relationships (1) |  | 153,489 |  |  | 12.0 - 15.0 |  | 14.0 |  | 8.5% - 9.5%
MainOne: |  |  |  |  |  |  |  |
Customer relationships (1) |  | 51,500 |  |  | 10.0 - 15.0 |  | 14.0 |  | 11.5 | %
Trade names (2) |  | 3,300 |  |  | 5.0 |  | 5.0 |  | 11.5 | %
(1)The fair value was estimated by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue. The rates reflect the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows, as well as the risk of the country within which the acquired business operates. (2)The fair value of the MainOne trade name was estimated using the relief from royalty method under the income approach. We applied a relief from royalty rate of 1.0%. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill is attributable to the workforce of the acquired business and the projected revenue increase expected to arise from future customers after the acquisition. Goodwill from the GPX India Acquisition is attributable to the Asia-Pacific region and is not deductible for local tax purposes. Goodwill from the Entel Chile Acquisition is attributable to the Americas region and is not expected to be amortizable for local tax purposes. Goodwill from the MainOne Acquisition is attributable to the EMEA region and is not deductible for local tax purposes except for the portion attributable to Ghana. Revenues and net income and loss from operations The operating results of the Entel Chile Acquisition are reported in the Americas region and the operating results of the MainOne Acquisition are reported in the EMEA region following the date of acquisition. During the three and six months ended June 30, 2022, our revenues were $27.0 million and our net income was insignificant from these acquisitions. Transaction costs During the three and six months ended June 30, 2022, the transaction costs for the MainOne Acquisition and Entel Chile Acquisition were insignificant.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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