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Acquisitions (Tables)
12 Months Ended
Dec. 31, 2013
Preliminary Purchase Price Allocation

In connection with the acquisitions, the Company recorded the following amounts based upon its preliminary purchase price allocations during the year ended December 31, 2013, which are subject to completion of valuations and other analyses (in thousands, except weighted-average useful lives):

 

     Weighted-Average
Useful Lives
   Official
Payments
Holdings, Inc.
     Online
Resourses
Corporation
     PTESA  

Current assets:

           

Cash and cash equivalents

      $ 25,871       $ 9,930       $ 193   

Billed and accrued receivables, net

        2,858         19,394         327   

Deferred income taxes, net

        2,644         11,222         —     

Other current assets

        27,766         17,663         87   
     

 

 

    

 

 

    

 

 

 

Total current assets acquired

        59,139         58,209         607   
     

 

 

    

 

 

    

 

 

 

Noncurrent assets:

           

Property and equipment

        8,141         7,335         6   

Goodwill

        43,512         122,469         7,120   

Software

   10 years      20,000         62,215         7,732   

Customer relationships

   14 -15 years      47,500         68,750         —     

Trademarks

   3 - 5 years      5,065         3,050         —     

Other noncurrent assets

        6,791         2,058         7   
     

 

 

    

 

 

    

 

 

 

Total assets acquired

        190,148         324,086         15,472   
     

 

 

    

 

 

    

 

 

 

Current liabilities:

           

Accounts payable

        8,572         15,393         341   

Accrued employee compensation

        14,905         10,549         261   

Note payable

        —           7,500         —     

Other current liabilities

        26,061         7,259         —     
     

 

 

    

 

 

    

 

 

 

Total current liabilities acquired

        49,538         40,701         602   
     

 

 

    

 

 

    

 

 

 

Noncurrent liabilities:

           

Deferred income taxes, net

        —           19,814         225   

Other noncurrent liabilities acquired

        828         3,453         439   
     

 

 

    

 

 

    

 

 

 

Total liabilities acquired

        50,366         63,968         1,266   
     

 

 

    

 

 

    

 

 

 

Net assets acquired

      $ 139,782       $ 260,118       $ 14,206   
     

 

 

    

 

 

    

 

 

 

 

In connection with the acquisitions, the Company recorded the following amounts based upon its purchase price allocations during the year ended December 31, 2013 (in thousands, except weighted-average useful lives):

 

     Weighted-Average
Useful Lives
   S1
Corporation
     Distra Pty
Ltd
 

Current assets:

        

Cash and cash equivalents

      $ 97,748       $ 2   

Billed and accrued receivables, net

        65,329         338   

Other current assets

        16,791         1,152   
     

 

 

    

 

 

 

Total current assets acquired

        179,868         1,492   
     

 

 

    

 

 

 

Noncurrent assets:

        

Property and equipment

        18,440         96   

Goodwill

        256,244         21,307   

Software

   5 - 10 years      87,517         18,802   

Customer relationships

   10 -20 years      108,690         6,200   

Trademarks

   3 years      4,500         —     

Covenant not to compete

   3 years      360         —     

Deferred income tax

        40,634         12,331   

Other noncurrent assets

        11,004         —     
     

 

 

    

 

 

 

Total assets acquired

        707,257         60,228   
     

 

 

    

 

 

 

Current liabilities:

        

Deferred revenue

        34,671         320   

Accrued employee compensation

        34,689         1,205   

Other current liabilities

        28,387         736   
     

 

 

    

 

 

 

Total current liabilities acquired

        97,747         2,261   
     

 

 

    

 

 

 

Noncurrent liabilities:

        

Deferred income tax

        15,795         8,217   

Other noncurrent liabilities acquired

        6,431         —     
     

 

 

    

 

 

 

Total liabilities acquired

        119,973         10,478   
     

 

 

    

 

 

 

Net assets acquired

      $ 587,284       $ 49,750   
     

 

 

    

 

 

 
S1 Corporation
 
Purchase Price of S One Corporation's Common Stock

The purchase price of S1 Corporation’s common stock as of the date of acquisition was comprised of (in thousands):

 

     Amount  

Cash payments to S1 shareholders

   $ 365,918   

Issuance of ACI common stock

     204,857   

Reissuance of treasury stock

     2,174   

Cash payments for noncompete agreements

     2,778   

S1 shares previously held as available-for-sale securities

     11,557   
  

 

 

 

Total Purchase Price

   $ 587,284   
  

 

 

 
ORCC and S1 Corporation
 
Pro Forma Results of Combined Company Operations

The pro forma financial information in the table below presents the combined results of operations for the Company, OPAY and ORCC as if the acquisitions had occurred January 1, 2012 and S1 as if the acquisition had occurred on January 1, 2011 (in thousands, except per share data). The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the periods presented. This pro forma information is not intended to represent or be indicative of actual results had the acquisition occurred as of the beginning of each period, nor is it necessarily indicative of future results and does not reflect potential synergies, integration costs, or other such costs or savings. Certain pro forma adjustments have been made to net income for the years ended December 31, 2013, 2012 and 2011 to give effect to estimated adjustments to expenses to remove the amortization on eliminated OPAY, ORCC and S1 historical identifiable intangible assets and added amortization expense for the value of identified intangibles acquired in the acquisitions (primarily acquired software, customer relationships, trade names, and covenants not to compete), adjustments to interest expense to reflect the elimination of preexisting OPAY, ORCC and S1 debt and added estimated interest expense on the Company’s additional Term Credit Facility and Revolving Credit Facility borrowings and to eliminate share-based compensation expense for eliminated positions. Additionally, certain transaction expenses that are a direct result of the acquisitions have been excluded from the years ended December 31, 2013, 2012 and 2011.

 

     Pro Forma Results of Operations for the Year
Ended December 31,
 
     2013      2012      2011  

Total Revenues

   $ 1,027,422       $ 1,017,681       $ 722,210   

Net Income

     78,002         64,443         46,221   

Income per share

        

Basic

   $ 1.99       $ 1.67       $ 1.18   

Diluted

   $ 1.95       $ 1.61       $ 1.15