SOPRA_STERIA_REGISTRATION_DOCUMENT_2017
2017 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements
The provisional goodwill related to this acquisition was determined based on the following elements:
Kentor
(in millions of euros)
Total assets acquired Total liabilities assumed
22.2 -29.5
TOTAL NET ASSETS ACQUIRED/(NET LIABILITIES ASSUMED)
-7.3
Minority interests PURCHASE PRICE
-
23.1 30.4
GOODWILL
p Galitt – On 7 November 2017, Sopra Steria completed its acquisition of Galitt, a consulting and solutions development firm in the payment systems and secure transactions market. Sopra Steria acquired 88.1% of the shares and voting rights in Tecfit, the holding company of Galitt. In addition, the Group has entered into an irrevocable commitment to acquire the remaining shares, in the form of a put option granted to the other Galitt shareholders.
At 31 December 2017, the liability recognised in respect of this put option was measured at €4.9 million. Galitt has been consolidated in Sopra Steria’s financial statements since 7 November 2017. At 31 December 2017, the identification of assets acquired and liabilities assumed was still in progress. The definitive purchase price allocation period runs until 6 November 2018.
The provisional goodwill related to this acquisition was determined based on the following elements:
Galitt
(in millions of euros)
Total assets acquired Total liabilities assumed
23.9 -10.3 13.7
TOTAL NET ASSETS ACQUIRED/(NET LIABILITIES ASSUMED)
Minority interests PURCHASE PRICE
-
46.7 33.1
GOODWILL
Galitt was part of the France cash-generating unit at 31 December 2017. p Other acquisitions – In July 2017, the Group acquired the French aviation software developer 2MoRO. The value assigned to the assets acquired and liabilities assumed was negative €0.5 million and the goodwill arising on the acquisition was €1.8 million.
The costs charged to profit and loss for these acquisitions, included in Other operating income and expenses , were not material.
Business combinations The Group applies IFRS 3 Business Combinations to the identified assets acquired and liabilities assumed as a result of business combinations. The acquisition of an asset or a group of assets that does not constitute a business is recognised under the standards applicable to those assets. All business combinations are recognised by applying the acquisition method, which consists in: p the measurement and recognition at fair value of the identifiable assets acquired and liabilities assumed. The Group identifies and allocates these items on the basis of contract provisions, economic conditions, and its accounting and management policies and procedures; p the measurement of any non-controlling interest in the acquiree either at its fair value or based on its share of the fair value of the identifiable assets acquired and liabilities assumed; p the measurement and recognition at the acquisition date of the difference (referred to as goodwill) between: • the purchase price of the acquiree plus the amount of any non-controlling interests in the acquiree, and
• the net amount of the identifiable assets acquired and liabilities assumed. The decision on how to measure non-controlling interests is made on an acquisition-by-acquisition basis and leads to the recognition of either full goodwill (should the fair value method be used) or partial goodwill (should a share of the fair value of the identifiable assets acquired and liabilities assumed be used). The acquisition date is the date on which the Group effectively obtains control of the acquiree. The purchase price of the acquiree is the fair value, at the acquisition date, of the elements of consideration transferred to the seller in exchange for control of the acquiree, to the exclusion of any consideration for a transaction separate from the business combination. If the initial accounting for a business combination can only be determined provisionally for the reporting period in which the combination takes place, the acquirer recognises the combination using provisional amounts. The acquirer must then recognise adjustments to those provisional amounts as the accounting for the business combination is completed within 12 months of the acquisition date.
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SOPRA STERIA REGISTRATION DOCUMENT 2017
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