XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.21.2

Acquisition | 6 Months Ended
--- | ---
Jun. 30, 2021
Business Combinations [Abstract] |
Acquisition | On June 1, 2021, we acquired all of the equity of First American in a cash transaction for $956,717, net of cash, cash equivalents, restricted cash and restricted cash equivalents acquired, subject to customary adjustments under the terms of the acquisition agreement. First American is a large-scale payments technology company that provides partners and merchants with comprehensive in-store, online and mobile payment solutions. The preliminary allocation of the purchase price to the assets acquired and liabilities assumed resulted in non-tax deductible goodwill of $736,308. The transaction resulted in goodwill as First American provides an end-to-end payments technology platform, which we believe will provide significant leverage to accelerate organic growth. The acquisition was funded with cash on hand and proceeds from new debt. Information regarding our debt can be found in Note 12. The goodwill and results of operations of First American from the date of acquisition are included in the Payments segment. The acquisition was accounted for as a business combination and the preliminary allocation of the purchase price to the assets acquired and liabilities assumed was based upon preliminary valuations performed to determine the fair values of the acquired items as of the acquisition date. As these valuations, particularly as they relate to intangible assets, were preliminary, they may be adjusted for up to one year after the closing date to reflect final valuations. The following illustrates the preliminary allocation of the purchase price, as of June 30, 2021, to the assets acquired and liabilities assumed:
(in thousands) |  | Purchase price allocation
Accounts receivable |  | $ | 27,296 |
Other current assets |  | 8,533 |
Property, plant and equipment |  | 9,873 |
Operating lease assets |  | 24,506 |
Intangible assets: |  |
Customer relationships |  | 118,000 |
Partner relationships |  | 67,000 |
Technology-based intangibles |  | 66,000 |
Trade names |  | 22,000 |
Internal-use software |  | 2,417 |
Total intangible assets |  | 275,417 |
Goodwill |  | 736,308 |
Other non-current assets |  | 350 |
Accounts payable |  | (18,475) |
Funds held for customers |  | (9,428) |
Accrued liabilities |  | (20,645) |
Operating lease liabilities, non-current |  | (21,426) |
Deferred income taxes |  | (51,216) |
Other non-current liabilities |  | (4,376) |
Payment for acquisition, net of cash, cash equivalents, restricted cash and restricted cash equivalents acquired of $15,841 |  | $ | 956,717 |
Information regarding the useful lives of the acquired intangibles can be found in Note 3. Information regarding the calculation of the estimated fair values of the acquired intangibles can be found in Note 8. Our results of operations for the quarter and six months ended June 30, 2021 included revenue of $27,343 and net loss of $66 from the operations of First American. In addition, we incurred acquisition transaction costs of $15,843 for the quarter ended June 30, 2021 and $18,608 for the six months ended June 30, 2021, which were included in SG&A expense in the consolidated statements of comprehensive income. The following unaudited pro forma financial information summarizes our consolidated results of operations as though the acquisition occurred on January 1, 2020:
|  | Pro Forma Statements of Comprehensive Income (Loss)
|  | Quarter Ended June 30, |  | Six Months Ended June 30,
(in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Revenue |  | $ | 563,088 |  |  | $ | 476,490 |  |  | $ | 1,081,192 |  |  | $ | 1,036,288 |
Net income (loss) |  | 16,943 |  |  | 4,851 |  |  | 37,712 |  |  | (80,259) |
The unaudited pro forma financial information was prepared in accordance with our accounting policies, which can be found under the caption "Note 1: Significant Accounting Policies" in the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K. The pro forma information includes adjustments to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from January 1, 2020, with the consequential tax effects. The pro forma information also includes adjustments to reflect the additional interest expense on the debt we issued to fund the acquisition (Note 12). The acquisition transaction costs we incurred are reflected in the pro forma results for the six months ended June 30, 2020. This pro forma financial information is for informational purposes only. It does not reflect the integration of the businesses or any synergies that may result from the acquisition. As such, it is not indicative of the results of operations that would have been achieved had the acquisition been consummated on January 1, 2020. In addition, the pro forma amounts are not indicative of future operating results.

X
- 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
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration