Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Tables)

v3.19.3
Acquisitions (Tables)
9 Months Ended
Sep. 30, 2019
Business Combinations [Abstract]  
Allocated Purchase Price The components of the purchase consideration and the preliminary allocation of each purchase price, including the effects of measurement period adjustments recorded as of September 30, 2019, are as follows:
 
 
LeaseTerm Solutions
 
Hipercept
 
Simple Bills
 
 
(in thousands)
Fair value of purchase consideration:
 
 
 
 
 
 
Cash, net of cash acquired
 
$
23,417

 
$
17,656

 
$
14,875

Deferred obligations, net
 
3,095

 
3,799

 
3,274

Contingent consideration
 

 
6,700

 

Total fair value of purchase consideration
 
$
26,512

 
$
28,155

 
$
18,149

 
 
 
 
 
 
 
Fair value of net assets acquired:
 
 
 
 
 
 
Restricted cash
 
$
5,889

 
$

 
$

Accounts receivable
 
491

 
888

 
841

Property, equipment, and software
 
400

 
171

 
82

Intangible assets:
 
 
 
 
 
 
Developed product technologies
 

 
1,700

 
4,000

Client relationships
 
7,100

 
3,000

 
5,200

Trade names
 
200

 
100

 
100

Right-of-use assets
 
167

 
435

 
1,993

Goodwill
 
18,625

 
23,116

 
9,541

Other assets
 

 
18

 
115

Accounts payable and accrued liabilities
 
(342
)
 
(703
)
 
(1,497
)
Client deposits held in restricted accounts
 
(5,889
)
 

 

Deferred revenue
 

 
(253
)
 
(547
)
Other long-term liabilities
 
(129
)
 
(317
)
 
(1,679
)
Total fair value of net assets acquired
 
$
26,512

 
$
28,155

 
$
18,149


The allocation of each purchase price, including effects of measurement period adjustments recorded as of September 30, 2019, is as follows:
 
 
 
Date of Acquisition
 
Aggregate Purchase Price
 
Closing Cash Payment, Net of Cash Acquired
 
Net Tangible Assets Acquired (Liabilities Assumed)
 
Identified Intangible Assets
 
Goodwill Recognized
 
 
 
 
 
(in thousands)
ClickPay Services, Inc.
(Final)
 
Apr 2018
 
$
220,992

 
$
138,983

 
$
(4,620
)
 
$
52,700

 
$
172,912

Blu Trend, LLC
(Final)
 
Jul 2018
 
$
8,500

 
$
8,500

 
$
343

 
$
4,270

 
$
3,887

LeaseLabs, Inc.
(Final)
 
Sept 2018
 
$
112,892

 
$
84,498

 
$
1,188

 
$
27,200

 
$
84,504

Rentlytics, Inc.
(Provisional)
 
Oct 2018
 
$
54,953

 
$
47,895

 
$
288

 
$
12,200

 
$
42,465


Schedule of Business Acquisitions Contingent Consideration
The following table presents changes in the Company’s deferred cash and stock obligations and contingent consideration for the nine months ended September 30, 2019 and the year ended December 31, 2018:
 
Deferred Cash and Stock Obligations
 
Contingent Consideration
 
Total
 
(in thousands)
Balance at January 1, 2018
$
47,016

 
$
414

 
$
47,430

Additions, net of fair value discount
36,313

 
7,000

 
43,313

Cash payments
(29,600
)
 
(247
)
 
(29,847
)
Accretion expense
1,970

 

 
1,970

Change in fair value

 
(1,167
)
 
(1,167
)
Indemnification claims and other adjustments
(3,557
)
 

 
(3,557
)
Balance at December 31, 2018
52,142

 
6,000

 
58,142

Additions, net of fair value discount
9,653

 
6,700

 
16,353

Cash payments
(20,914
)
 
(5,963
)
 
(26,877
)
Settlements through common stock issued
(14,846
)
 

 
(14,846
)
Accretion expense
1,302

 
58

 
1,360

Change in fair value

 
(37
)
 
(37
)
Indemnification claims and other adjustments
130

 

 
130

Balance at September 30, 2019
$
27,467

 
$
6,758

 
$
34,225


Pro Forma Financial Information
The following table presents unaudited pro forma results of operations for the three and nine months ended September 30, 2019 and 2018, as if the aforementioned 2019 and 2018 acquisitions had occurred as of January 1, 2018 and January 1, 2017, respectively. The pro forma information includes the business combination accounting effects resulting from these acquisitions, including interest expense, tax expense or benefit, issuance of shares of our common stock, and additional amortization resulting from the valuation of amortizable intangible assets. We prepared the pro forma financial information for the combined entities for comparative purposes only, and it is not indicative of what actual results would have been if the acquisitions had occurred at the beginning of the periods presented, or of future results.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
Pro Forma
 
2018
Pro Forma
 
2019
Pro Forma
 
2018
Pro Forma
 
(unaudited)
 
(in thousands, except per share amounts)
Total revenue
$
256,013

 
$
235,473

 
$
743,443

 
$
686,557

Net income
$
11,855

 
$
7,843

 
$
38,332

 
$
21,986

Net income per share:
 
 
 
 
 
 
 
Basic
$
0.13

 
$
0.09

 
$
0.42

 
$
0.26

Diluted
$
0.12

 
$
0.09

 
$
0.40

 
$
0.25