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Acquisition | 3 Months Ended
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Mar. 31, 2020
Business Combinations [Abstract] |
Acquisition | Acquisition Speedpay On May 9, 2019, the Company acquired Speedpay, a subsidiary of The Western Union Company (“Western Union”), for $754.1 million in cash, including working capital adjustments, pursuant to a Stock Purchase Agreement, among the Company, Western Union, and ACI Worldwide Corp., a wholly owned subsidiary of the Company. The Company has included the financial results of Speedpay in the condensed consolidated financial statements from the date of acquisition. The combination of the Company and Speedpay bill pay solutions serves more than 4,000 customers across the U.S., bringing expanded reach in existing and complementary market segments such as consumer finance, insurance, healthcare, higher education, utilities, government, and mortgage. The acquisition of Speedpay increases the scale of the Company’s On Demand platform business and allows the acceleration of platform innovation through increased research and development and investment in ACI's On Demand platform infrastructure. To fund the acquisition, the Company amended its existing Credit Agreement, dated February 24, 2017, for an additional $500.0 million senior secured term loan (“Delayed Draw Term Loan”), in addition to drawing $250.0 million on the available Revolving Credit Facility. See Note 4, Debt, for terms of the Credit Agreement. The remaining acquisition consideration was funded with cash on hand. The Company expensed approximately $4.7 million of costs related to the acquisition of Speedpay for the three months ended March 31, 2019. These costs, which consist primarily of investment bank, consulting, and legal fees, are included in general and administrative expenses in the accompanying condensed consolidated statements of operations. Speedpay contributed approximately $88.7 million in revenue and $12.3 million in operating income for the three months ended March 31, 2020. In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of March 31, 2020 (in thousands, except weighted average useful lives):
|  | Amount |  | Weighted Average Useful Lives
Current assets: |  |  |  |
Cash and cash equivalents |  | $ | 135 |  |  |
Receivables, net of allowances |  | 17,658 |  |  |
Settlement assets |  | 239,604 |  |  |
Prepaid expenses |  | 317 |  |  |
Other current assets |  | 19,585 |  |  |
Total current assets acquired |  | 277,299 |  |  |
Noncurrent assets: |  |  |  |
Goodwill |  | 366,508 |  |  |
Software |  | 113,600 |  |  | 7 years
Customer relationships |  | 208,500 |  |  | 15 years
Trademarks |  | 10,900 |  |  | 5 years
Other noncurrent assets |  | 3,745 |  |  |
Total assets acquired |  | 980,552 |  |  |
Current liabilities: |  |  |  |
Accounts payable |  | 6,623 |  |  |
Settlement liabilities |  | 212,892 |  |  |
Employee compensation |  | 1,959 |  |  |
Other current liabilities |  | 3,802 |  |  |
Total current liabilities acquired |  | 225,276 |  |  |
Noncurrent liabilities: |  |  |  |
Other noncurrent liabilities |  | 1,219 |  |  |
Total liabilities acquired |  | 226,495 |  |  |
Net assets acquired |  | $ | 754,057 |  |  |
During the three months ended March 31, 2020, the Company made adjustments to the preliminary purchase price allocation as additional information became available for accounts payable. These adjustments and any resulting adjustments to the statements of operations were not material to the Company’s previously reported operating results or financial position. Factors contributing to the purchase price that resulted in the goodwill (which is tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the Company, enhanced product capabilities, complementary products, and customers. Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of operations for ACI and Speedpay as if the acquisition had occurred January 1, 2018. 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 transaction 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, and does not reflect potential synergies, integration costs, or other such costs or savings. Certain pro forma adjustments have been made to net loss for the three months ended March 31, 2019, to give effect to estimated adjustments that remove the amortization expense on eliminated Speedpay historical identifiable intangible assets, add amortization expense for the value of acquired identified intangible assets (primarily acquired software, customer relationships, and trademarks), and add estimated interest expense on the Company’s additional Delayed Draw Term Loan and Revolving Credit Facility borrowings. Additionally, certain transaction expenses that are a direct result of the acquisition have been excluded. The three months ended March 31, 2020, is not presented as Speedpay is included in the Company's consolidated results for the entire period. The following is the unaudited summarized pro forma financial information (in thousands, except per share data):
|  |  |  | Three Months Ended March 31, 2019
Pro forma revenue |  |  |  | $ | 294,059 |
Pro forma net loss |  |  |  | $ | (21,245) |
Pro forma loss per share: |  |  |  |
Basic |  |  |  | $ | (0.18) |
Diluted |  |  |  | $ | (0.18) |
Walletron On May 9, 2019, the Company also completed the acquisition of Walletron, which delivers patented mobile wallet technology. The Company has included the financial results of Walletron in the condensed consolidated financial statements from the date of acquisition, which 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://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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