BUSINESS COMBINATIONS

12 Months Ended

Dec. 31, 2020

Handy Acquisition

On October 19, 2018, the Company acquired 100% of Handy, a leading platform for connecting individuals looking for household services, for total consideration of $168.4 million. This includes the aggregate fair value of 8.6 million shares of Class A common stock issued by the Company of $165.8 million, which was based on the closing stock price of ANGI on the NASDAQ on October 19, 2018 of $19.31 and cash consideration paid by the Company.

During 2019, the Company finalized its assessment of net operating losses acquired in the Handy acquisition. As a result, the Company revised the purchase price allocation for Handy by increasing the fair value of deferred tax assets by $27.2 million and decreasing goodwill by $27.2 million.

The financial results of Handy are included in the Company’s consolidated financial statements, within the North America segment, beginning October 19, 2018.

The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition:


	Handy
	(In thousands)
Cash and cash equivalents	$	5,710
Other current assets	2,050
Goodwill	115,183
Intangible assets	38,800
Other non-current assets	8
Deferred income taxes	20,070
Total assets	181,821
Current liabilities	(13,419)
Net assets acquired	$	168,402

The purchase price was based on the expected financial performance of Handy, not on the value of the net identifiable assets at the time of acquisition. This resulted in a significant portion of the purchase price being attributed to goodwill because Handy is complementary and synergistic to the other North America businesses of ANGI Homeservices.

The fair values of the identifiable intangible assets acquired at the date of acquisition are as follows:


	Handy
	(In thousands)		Weighted-Average Useful Life (Years)
Indefinite-lived trade name and trademarks	$	18,800	Indefinite
Developed technology	15,600		4
User base	3,400		1
Retail partners	600		3
Service professionals	400		1
Total identifiable intangible assets acquired	$	38,800

Other current assets, other non-current assets and current liabilities of Handy were reviewed and adjusted to their fair values at the date of acquisition, as necessary. The fair values of the trade name and developed technology were determined using variations of the income approach; specifically, in respective order, the relief from royalty and excess earnings methodologies. The fair values of user base, retail partners, and service professionals were determined using a cost approach that utilized the cost to replace methodology. The valuations of the intangible assets incorporate significant unobservable inputs and require significant judgment and estimates, including the amount and timing of future cash flows and the determination of royalty and discount rates. The amount attributed to goodwill is not tax deductible.