Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Tables)

v3.10.0.1
Acquisitions (Tables)
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Allocated Purchase Price
The allocation of each purchase price, including the effects of measurement period adjustments recorded as of September 30, 2018, was as follows:
 
Axiometrics
 
AUM
 
On-Site
 
PEX
 
LRO
 
(Final)
 
(Final)
 
(Final)
 
(Provisional)
 
(Provisional)
 
(in thousands)
Fair value of total purchase consideration:
 
 
 
 
 
 
 
 
 
Cash, net of cash acquired
$
66,050

 
$
64,775

 
$
225,300

 
$
5,103

 
$
298,040

Liabilities assumed

 

 

 

 
377

Deferred cash obligations, net
6,895

 
4,637

 
25,809

 
928

 
1,506

Contingent consideration
812

 

 

 

 

Total purchase consideration
$
73,757

 
$
69,412

 
$
251,109

 
$
6,031

 
$
299,923

 
 
 
 
 
 
 
 
 
 
Fair value of net assets acquired:
 
 
 
 
 
 
 
 
 
Restricted cash
$

 
$
5,954

 
$
3,458

 
$

 
$

Accounts receivable
1,620

 
2,409

 
4,484

 
107

 
4,460

Property, equipment, and software
400

 
319

 
789

 

 
1,507

Intangible assets:
 
 
 
 
 
 
 
 
 
Developed product technologies
15,500

 
10,800

 
16,960

 
2,350

 
42,000

Client relationships
6,830

 
7,470

 
41,360

 
590

 
49,000

Trade names
3,200

 
208

 
7,000

 
160

 
666

Non-compete agreements

 
3,920

 

 

 

Goodwill
54,190

 
45,907

 
182,592

 
3,300

 
202,868

Other assets
273

 
850

 
853

 
95

 
475

Accounts payable and accrued liabilities
(367
)
 
(2,150
)
 
(1,124
)
 
(242
)
 
(192
)
Client deposits held in restricted accounts

 
(5,954
)
 
(3,458
)
 

 

Deferred revenue
(7,115
)
 
(321
)
 
(565
)
 
(221
)
 
(861
)
Other long-term liabilities
(774
)
 

 

 

 

Deferred tax liability

 

 
(1,240
)
 
(108
)
 

Total fair value of net assets acquired
$
73,757

 
$
69,412

 
$
251,109

 
$
6,031

 
$
299,923



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, 2018, are as follows:
 
 
 
 
 
ClickPay
 
BluTrend
 
LeaseLabs
 
 
 
 
 
(in thousands)
Fair value of total purchase consideration:
 
 
 
 
 
 
 
 
 
Cash, net of cash acquired
 
 
 
 
$
138,787

 
$
8,500

 
$
84,500

Common stock issued at closing
 
 
 
 
48,034

 

 
5,300

Deferred obligations, net
 
 
 
 
9,821

 

 
15,888

Noncontrolling interest financing
 
 
 
 
24,369

 

 

Contingent consideration
 
 
 
 

 

 
7,000

Total purchase consideration
 
 
 
 
$
221,011

 
$
8,500

 
$
112,688

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

 
$

 
$

Accounts receivable
 
 
 
 
2,288

 
226

 
2,625

Property, equipment, and software
 
 
 
 
89

 

 
865

Intangible assets:
 
 
 
 
 
 
 
 
 
Developed product technologies
 
 
 
 
29,100

 
730

 
8,300

Client relationships
 
 
 
 
20,700

 
3,510

 
17,800

Trade names
 
 
 
 
2,900

 
30

 
1,100

Goodwill
 
 
 
 
172,618

 
3,887

 
84,127

Other assets
 
 
 
 
443

 
122

 
363

Accounts payable and accrued liabilities
 
 
 
 
(2,697
)
 
(5
)
 
(167
)
Client deposits held in restricted accounts
 
 
 
 
(1,313
)
 

 

Deferred revenue
 
 
 
 

 

 
(2,325
)
Deferred tax liability, net
 
 
 
 
(4,430
)
 

 

Total fair value of net assets acquired

 

 
$
221,011

 
$
8,500

 
$
112,688

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, 2018 and the year ended December 31, 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
25,709

 
7,000

 
32,709

Cash payments
(26,734
)
 
(247
)
 
(26,981
)
Accretion expense
1,491

 

 
1,491

Change in fair value

 
(167
)
 
(167
)
Indemnification claims and other adjustments
(2,753
)
 

 
(2,753
)
Balance at September 30, 2018
$
44,729

 
$
7,000

 
$
51,729

Pro Forma Financial Information
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
Pro Forma
 
2017
Pro Forma
 
2018
Pro Forma
 
2017
Pro Forma
 
(unaudited)
 
(in thousands, except per share amounts)
Total revenue
$
228,588

 
$
202,957

 
$
667,668

 
$
598,560

Net income
$
9,072

 
$
7,221

 
$
26,431

 
$
11,132

Net income per share:
 
 
 
 
 
 
 
Basic
$
0.10

 
$
0.09

 
$
0.31

 
$
0.14

Diluted
$
0.09

 
$
0.09

 
$
0.29

 
$
0.13