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Business Acquisitions (Text Block) | 9 Months Ended
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Mar. 31, 2023
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] |
Business Acquisition Disclosure [Text Block] | BUSINESS ACQUISITION Payrailz On August 31, 2022, the Company acquired all of the equity interest in Payrailz, LLC ("Payrailz"). The final purchase price, following customary post-closing adjustments to the extent actual closing date working capital, cash, debt, and unpaid seller transaction expenses exceeded or were less than the amounts estimated at closing, was $230,205. Pursuant to the merger agreement for the transaction, $48,500 of the purchase price was placed in an escrow account at the closing, consisting of $2,500 for any final purchase price adjustments owed by the sellers, which amount was released to the sellers on December 15, 2022, in connection with post-closing adjustments, and $46,000 for indemnification matters under the merger agreement. The primary reason for the acquisition was to expand the Company's digital financial management solutions and the purchase was funded by our revolving line of credit (Note 6) and cash generated from operations. Payrailz provides cloud-native, API-first, AI-enabled consumer and commercial digital payment solutions and experiences that enable money to be moved in the moment of need. Management has completed a preliminary purchase price allocation and assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired, and liabilities assumed, based on their fair values as of August 31, 2022, and taking into account the post-closing purchase price adjustment described above, are set forth below:
Current assets | $ | 1,851 |
Identifiable intangible assets | 119,868 |
Deferred revenue | (8,104) |
Total other liabilities assumed | (749) |
Total identifiable net assets | 112,866 |
Goodwill | 117,339 |
Net assets acquired | $ | 230,205 |
The amounts shown above include a measurement period adjustment made during the second quarter of fiscal 2023 related to a working capital adjustment. The amounts shown above may change as management continues to evaluate the income tax implications of this business combination. The goodwill of $117,339 arising from this acquisition consists largely of the growth potential, synergies, and economies of scale expected from combining the operations of the Company with those of Payrailz, together with the value of Payrailz's assembled workforce. The goodwill from this acquisition has been allocated to our Payments segment and $117,339 is expected to be deductible for income tax purposes. Identifiable intangible assets from this acquisition consist of customer relationships of $6,109, computer software of $112,505, and other intangible assets of $1,254. The amortization period for acquired customer relationships, computer software, and other intangible assets is over a term of 15 years, 10 years, and 15 years, respectively. Current assets were inclusive of cash acquired of $577. The fair value of current assets acquired included accounts receivable of $978, none of which were expected to be uncollectible. Costs incurred related to the acquisition of Payrailz during the three and nine months ended March 31, 2023, totaled $39 and $547, respectively, for administrative and professional services, travel, and other fees, and were expensed as incurred and reported within cost of revenue and selling, general, and administrative expense. The Company's condensed consolidated statements of income for the three and nine months ended March 31, 2023, included revenue of $2,658 and $5,975, respectively, and after-tax net loss of $4,938 and $12,213, respectively, resulting from Payrailz's operations. The accompanying condensed consolidated statements of income for the three and nine months ended March 31, 2023, and 2022, do not include any revenues and expenses related to this acquisition prior to the acquisition date. The following unaudited pro forma consolidated financial information for the nine months ended March 31, 2023, and the three and nine months ended March 31, 2022, is presented as if this acquisition had occurred at the beginning of the prior period presented. The pro forma net income includes estimated incremental amortization expense of $2,935 and $7,481 for the three and nine months ended March 31, 2022, respectively, and $1,957 for the nine months ended March 31, 2023. In addition, this unaudited pro forma financial information is provided for illustrative purposes only and should not be relied upon as necessarily being indicative of the historical results that would have been obtained if the acquisition had actually occurred during this period, or the results that may be obtained in the future as a result of the acquisition.
|  |  |  |  |  | Three Months Ended March 31, |  |  |  |  |  | Nine Months Ended March 31,
|  |  |  |  |  |  |  | 2023 |  | 2022 |  |  |  |  |  | 2023 |  | 2022
|  |  |  |  |  |  |  |  |  | Actual |  | Pro forma |  |  |  |  |  |  |  |  |  | Pro forma |  | Pro forma
Revenue |  |  |  |  |  |  |  |  |  | $ | 508,552 |  |  | $ | 480,444 |  |  |  |  |  |  |  |  |  |  | $ | 1,544,696 |  |  | $ | 1,465,568 |
Net Income |  |  |  |  |  |  |  |  |  | 81,549 |  |  | 79,194 |  |  |  |  |  |  |  |  |  |  | 264,336 |  |  | 269,084 |

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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 http://asc.fasb.org/topic&trid=2303972 + Details
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