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ACQUISITION | 9 Months Ended
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Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract] |
ACQUISITION | ACQUISITION EVO Payments, Inc. On March 24, 2023, we acquired all of the outstanding common stock of EVO Payments, Inc. (“EVO”). EVO is a leading payment technology and services provider, offering an array of payment solutions to merchants ranging from small and middle market enterprises to multinational companies and organizations across the Americas and Europe. The acquisition aligns with our technology-enabled payments strategy, expands our geographic presence in attractive markets and augments our business-to-business software and payment solutions business. Total purchase consideration was $4.3 billion, which consisted of the following (in thousands):
Cash paid to EVO shareholders (1) |  | $ | 3,273,951 |
Cash paid for equity awards attributable to purchase consideration (2) |  | 58,510 |
Value of replacement awards attributable to purchase consideration (3) |  | 2,484 |
Total purchase consideration transferred to EVO shareholders |  | 3,334,945 |
Repayment of EVO's unsecured revolving credit facility (including accrued interest and fees) |  | 665,557 |
Payment of certain acquiree transaction costs and other liabilities on behalf of EVO (4) |  | 269,118 |
Total purchase consideration |  | $ | 4,269,620 |
(1) Holders of EVO common stock, convertible preferred stock and common units received $34 for each share of EVO common stock held at the effective time of the transaction. (2) Pursuant to the merger agreement, we cash settled vested options and certain unvested equity awards of EVO equity award holders. (3) Pursuant to the merger agreement, we granted equity awards for approximately 0.3 million shares of Global Payments common stock to certain EVO equity award holders. Each such replacement award is subject to the same terms and conditions (including vesting and exercisability) that applied to the corresponding EVO equity award. We apportioned the fair value of the replacement awards between purchase consideration (the portion attributable to pre-acquisition services in relation to the total vesting term of the award) and amounts to be recognized in periods following the acquisition as share-based compensation expense over the requisite service period of the replacement awards. (4) Certain acquiree transaction costs and liabilities, including amounts outstanding under EVO’s tax receivable agreement, were required to be repaid by us upon consummation of the acquisition. The cash portion of the purchase consideration was funded through cash on hand and borrowings under our revolving credit facility. The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, were as follows:
| Provisional Amounts at Acquisition Date |  | Measurement-period Adjustments |  | Provisional Amounts at September 30, 2023
| (in thousands)
Cash and cash equivalents | $ | 324,859 |  |  | $ | — |  |  | $ | 324,859 |
Accounts receivable | 105,680 |  |  | (54,210) |  |  | 51,470 |
Settlement processing assets | 125,061 |  |  | 18,108 |  |  | 143,169 |
Deferred income tax assets | 15,464 |  |  | (319) |  |  | 15,145 |
Property and equipment | 83,540 |  |  | (4,807) |  |  | 78,733 |
Identifiable intangible assets | 1,208,400 |  |  | 291,595 |  |  | 1,499,995 |
Other assets | 157,166 |  |  | (5,106) |  |  | 152,060 |
Accounts payable and accrued liabilities | (277,800) |  |  | (5,788) |  |  | (283,588) |
Settlement lines of credit | (11,371) |  |  | 3,784 |  |  | (7,587) |
Settlement processing obligations | (199,161) |  |  | 35,626 |  |  | (163,535) |
Deferred income tax liabilities | (168,098) |  |  | (62,719) |  |  | (230,817) |
Other liabilities | (58,089) |  |  | (2,943) |  |  | (61,032) |
Total identifiable net assets | 1,305,651 |  |  | 213,221 |  |  | 1,518,872 |
Redeemable noncontrolling interests | (556,070) |  |  | 75,498 |  |  | (480,572) |
Goodwill | 3,520,039 |  |  | (288,719) |  |  | 3,231,320 |
Total purchase consideration | $ | 4,269,620 |  |  | $ | — |  |  | $ | 4,269,620 |
As of September 30, 2023, we considered these amounts to be provisional because we were still in the process of gathering and reviewing information to support the valuations of the assets acquired, liabilities assumed and related tax positions. We made measurement-period adjustments as shown in the table above, and the effects of the measurement-period adjustments on our consolidated statements of income for the three and nine months ended September 30, 2023 were not material. Goodwill arising from the acquisition was included in the Merchant Solutions segment as of September 30, 2023 and was attributable to expected growth opportunities, potential synergies from combining the acquired business into our existing business and an assembled workforce. We expect that a portion of the goodwill from this acquisition will be deductible for income tax purposes. As the amounts are still provisional, we are still in the process of assigning goodwill to our reporting units. The following table reflects the provisional estimated acquisition-date fair values of the identified intangible assets of EVO and their respective weighted-average estimated amortization periods:
| Estimated Fair Value |  | Weighted-Average Estimated Amortization Periods
| (in thousands) |  | (years)
Customer-related intangible assets | $ | 920,000 |  |  | 10
Contract-based intangible assets | 487,000 |  |  | 12
Acquired technologies | 86,995 |  |  | 7
Trademarks and trade names | 6,000 |  |  | 2
Total estimated identifiable intangible assets | $ | 1,499,995 |  |  | 11
From the acquisition date through September 30, 2023, the acquired operations of EVO contributed less than 10% to our consolidated revenues and operating income. The historical revenue and earnings of EVO were not material for the purpose of presenting pro forma information. In addition, transaction costs associated with this business combination were not material.

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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://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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