Annual report pursuant to Section 13 and 15(d)

Acquisitions (Tables)

v3.10.0.1
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]  
Allocated Purchase Price
We completed eight acquisitions during fiscal years 2017 and 2016. A summary of each acquisition can be found in the table below:
 
 
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)
NWP Services Corporation
 
March 2016
 
$
68,183

 
$
62,190

 
$
18,314

 
$
16,349

 
$
33,520

AssetEye, Inc.
 
May 2016
 
$
4,911

 
$
3,749

 
$
(928
)
 
$
2,685

 
$
3,154

eSupply Systems, LLC
 
June 2016
 
$
7,046

 
$
5,461

 
$
267

 
$
3,585

 
$
3,194

Axiometrics LLC
 
January 2017
 
$
73,757

 
$
66,050

 
$
(5,963
)
 
$
25,530

 
$
54,190

American Utility Management
 
June 2017
 
$
69,412

 
$
64,775

 
$
1,107

 
$
22,398

 
$
45,907

On-Site Manager, Inc.
 
September 2017
 
$
251,109

 
$
225,300

 
$
3,197

 
$
65,320

 
$
182,592

PEX Software Limited
 
October 2017
 
$
6,031

 
$
5,103

 
$
(369
)
 
$
3,100

 
$
3,300

Lease Rent Options
 
December 2017
 
$
299,923

 
$
298,040

 
$
5,263

 
$
91,666

 
$
202,994

The components of the purchase consideration and the preliminary allocation of each purchase price, including the effects of measurement period adjustments recorded as of December 31, 2018, are as follows:
 
 
ClickPay
 
BluTrend
 
LeaseLabs
 
Rentlytics
 
 
(in thousands)
Fair value of purchase consideration:
 
 
 
 
 
 
 
 
Cash, net of cash acquired
 
$
138,983

 
$
8,500

 
$
84,498

 
$
47,895

Common stock issued at closing
 
48,034

 

 
5,300

 

Deferred obligations, net
 
9,677

 

 
16,094

 
7,517

Noncontrolling interest financing
 
24,369

 

 

 

Contingent consideration
 

 

 
7,000

 

Total fair value of purchase consideration
 
$
221,063

 
$
8,500

 
$
112,892


$
55,412

 
 
 
 
 
 
 
 
 
Fair value of net assets acquired:
 
 
 
 
 
 
 
 
Restricted cash
 
$
1,313

 
$

 
$

 
$

Accounts receivable
 
2,226

 
226

 
2,853

 
1,585

Property, equipment, and software
 
89

 

 
865

 

Deferred tax asset, net
 

 

 

 
988

Intangible assets:
 
 
 
 
 
 
 
 
Developed product technologies
 
29,100

 
730

 
8,300

 
3,300

Client relationships
 
20,700

 
3,510

 
17,800

 
8,500

Trade names
 
2,900

 
30

 
1,100

 
400

Goodwill
 
173,250

 
3,887

 
84,674

 
42,351

Other assets
 
362

 
122

 
321

 
401

Accounts payable and accrued liabilities
 
(2,698
)
 
(5
)
 
(696
)
 
(763
)
Client deposits held in restricted accounts
 
(1,313
)
 

 

 

Deferred revenue
 

 

 
(2,325
)
 
(1,350
)
Deferred tax liability, net
 
(4,866
)
 

 

 

Total fair value of net assets acquired
 
$
221,063

 
$
8,500

 
$
112,892


$
55,412

Schedule of Business Acquisitions Contingent Consideration
The following table presents changes in our deferred cash and stock obligations and contingent consideration for the fiscal years ended December 31, 2018 and 2017:
 
Deferred Cash and Stock Obligations
 
Contingent Consideration
 
Total
 
(in thousands)
Balance at January 1, 2017
$
14,150

 
$
541

 
$
14,691

Additions, net of fair value discount
42,104

 
812

 
42,916

Cash payments
(8,215
)
 
(700
)
 
(8,915
)
Accretion expense
1,049

 

 
1,049

Change in fair value

 
(239
)
 
(239
)
Indemnification claims and other adjustments
(2,072
)
 

 
(2,072
)
Balance at December 31, 2017
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

Pro Forma Financial Information
 
 
Year Ended December 31,
 
 
2018
Pro Forma
 
2017
Pro Forma
 
 
(unaudited)
 
 
(in thousands, except per share amounts)
Total revenue
 
$
899,966

 
$
809,987

Net income (loss)
 
$
27,969

 
$
(14,210
)
Net income (loss) per share:
 
 
 
 
Basic
 
$
0.32

 
$
(0.18
)
Diluted
 
$
0.30

 
$
(0.18
)