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Business Acquisition | 6 Months Ended
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Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Business Acquisition | Business Acquisition Acquisition of a Business On November 1, 2023, the Company completed the acquisition of 100% of the outstanding shares of Sinqia S.A. (“Sinqia”), a publicly held company incorporated and existing in accordance with the laws of the Federative Republic of Brazil. The Company completed the acquisition through its wholly-owned subsidiary, Evertec Brasil Informática S.A (“Evertec BR”). In accordance with ASC 805-10-25-15, Evertec is allowed a period, not to exceed 12 months from the acquisition date, to adjust the provisional amounts recognized for a business combination. During 2024, the Company adjusted the operating lease right-of-use asset, goodwill, long-term deferred tax asset, operating lease liability, deferred tax liability and other intangible assets as a result of additional information that became available during the period. The preliminary purchase price allocation based on the applicable exchange rate at the date of acquisition is as follows:
| Assets/Liabilities (at fair value)
( In thousands) |
Cash and cash equivalents | $ | 37,147 |
Restricted cash | 2,166 |
Accounts receivable, net | 9,989 |
Prepaid expenses and other assets | 5,975 |
Property and equipment, net | 3,618 |
Operating lease right-of-use asset | 3,191 |
Goodwill | 341,801 |
Equity securities, at fair value | 9,035 |
Long-term deferred tax asset | 28,758 |
Other intangible assets, net | 289,540 |
Other long-term assets | 5,455 |
Total assets acquired | $ | 736,675 |
Accounts payable | 13,241 |
Accrued liabilities | 40,775 |
Operating lease liability | 4,114 |
Current portion of long-term debt | 11,400 |
Long-term debt | 57,492 |
Contract liability | 7,356 |
Deferred tax liability | 76,150 |
Other long-term liabilities | 15,134 |
Total liabilities assumed | $ | 225,662 |
Redeemable noncontrolling interests | 39,340 |
Additional paid-in capital | 471,673 |
Total liabilities and equity | $ | 736,675 |
The following table details the major groups of intangible assets acquired and the weighted average amortization period for these assets:
|  | Amount | Weighted-average life
(Dollar amounts in thousands) |  |  |
Customer relationships |  | $ | 155,876 |  | 18
Trademark |  | 47,688 |  | 10
Software packages |  | 85,976 |  | 10
Total |  | $ | 289,540 |  | 14
Refer to Note 4- Goodwill and Other Intangible Assets for detail of goodwill allocated by reportable segments. The goodwill is primarily attributed to selling the Company's products and services to Sinqia's client base, exporting Sinqia's products to other markets where the Company has presence and the assembled workforce. Currently, a portion of goodwill related to previous Sinqia acquisitions is deductible for income tax purposes on a statutory basis. The Company continues to finalize the purchase price allocation and further changes to the preliminary allocation may be required.

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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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