10-Q
TTEC HOLDINGS, INC. filed this Form 10-Q on 11/07/2018
Entire Document
 

Table of Contents

TTEC HOLDINGS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands):

 

 

 

 

 

 

 

Acquisition Date

 

 

 

Fair Value

 

Cash

 

$

 —

 

Accounts receivable, net

 

 

15,959

 

Prepaid expenses

 

 

241

 

Other current assets

 

 

51

 

Property, plant and equipment

 

 

7,594

 

Customer relationships

 

 

35,000

 

Goodwill

 

 

35,272

 

 

 

$

94,117

 

 

 

 

 

 

Accounts payable

 

$

 1

 

Accrued employee compensation and benefits

 

 

346

 

Accrued expenses

 

 

386

 

Deferred tax liabilities

 

 

15,273

 

Deferred revenue

 

 

399

 

 

 

$

16,405

 

 

 

 

 

 

Total purchase price

 

$

77,712

 

 

In the fourth quarter of 2017, the Company finalized its valuation of Connextions for the acquisition date assets acquired and liabilities assumed and determined that no material adjustments to any of the balances were required.

The Connextions customer relationships are being amortized over a useful life of 12 years. The goodwill recognized from the Connextions acquisition is attributable, but not limited to, the acquired work force and expected synergies with CMS. None of the tax basis of the acquired intangibles and goodwill will be deductible for income tax purposes. The acquired goodwill and the operating results of Connextions are reported within the CMS segment from the date of acquisition.

Financial Impact of Acquired Businesses

The acquired businesses purchased in 2017 and 2018 noted above contributed revenues of $41.3 million and $130.0 million, and net income of $1.4 million and $10.6 million, inclusive of $1.6 million and $4.9 million of acquired intangible amortization, to the Company for the three and nine months ended September 30, 2018, respectively.

The unaudited proforma financial results for the three and nine months ended September 30, 2017 and 2018 combines the consolidated results of the Company, SCS, BH, Motif, and Connextions assuming the BH and SCS acquisitions had been completed on January 1, 2017 and the Motif and Connextions acquisitions on January 1, 2016. The reported revenue and net income of $359.0 million and $14.8 million would have been $371.7 million and $17.3 million for the three months ended September 30, 2017, respectively, on an unaudited proforma basis. The reported revenue and net income of $1,050.7 million and $48.7 million would have been $1,126.2 million and $53.9 million for the nine months ended September 30, 2017, respectively, on an unaudited proforma basis. 

For 2018, the reported revenue and net income of $364.9 million and $5.4 million would have been $364.9 million and $5.4 million for the three months ended September 30, 2018, respectively, on an unaudited proforma basis. The reported revenue and net income of $1,090.0 million and $15.5 million would have been $1,094.1 million and $16.0 million for the nine months ended September 30, 2018, respectively, on an unaudited proforma basis. 

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