Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

2.1. Main acquisitions

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 2018, the liability recognised in respect of this put option was measured at €7.3 million.

Galitt has been consolidated in Sopra Steria’s financial statements since 7 November 2017. The assets acquired and liabilities assumed include the valuation of customer relationships for €8.1 million and a brand for €4.1 million. The final purchase price allocation period ran until 6 November 2018.

The allocation of goodwill is final. It was determined based on the following elements:

Galitt

(in millions of euros)

Total assets acquired Total liabilities assumed

35.7 -14.1 21.6 46.7 25.2

TOTAL NET ASSETS ACQUIRED/(NET LIABILITIES ASSUMED)

PURCHASE PRICE

GOODWILL

p Apak – On 18 October 2018, through its subsidiary Sopra Banking Software, Sopra Steria acquired 100% of Sword Apak, which develops specialised lending solutions for car loans and asset finance. This acquisition gives Sopra Banking Software an unrivalled position in the asset finance software market and complements Cassiopae’s offering.

The Apak group’s companies have been consolidated in Sopra Steria’s financial statements since 18 October 2018. They are part of the “Sopra Banking Software” cash-generating unit.

The inventory of assets acquired and liabilities assumed remains provisional, and includes the valuation of enterprise software for €12.3 million, customer relationships for €10.8 million and a brand for €2.4 million. The final purchase price allocation period runs until 17 October 2019.

The provisional allocation of goodwill breaks down as follows:

Apak

(in millions of euros)

Total assets acquired Total liabilities assumed

57.4 -20.0 37.4 127.9

TOTAL NET ASSETS ACQUIRED/(NET LIABILITIES ASSUMED)

PURCHASE PRICE

GOODWILL

90.5

p It-Economics – On 5 July 2018, Sopra Steria finalised its acquisition of 100% of the share capital of it-economics, a German consulting firm specialising in digital transformation, agile development, cloud services and the management of complex large-scale projects for major clients in the banking, insurance and utilities sectors, with which it has established long-standing partnerships.

The it-economics group’s companies have been consolidated in Sopra Steria’s financial statements since 5 July 2018. They are part of the “Germany” cash-generating unit.

The assets acquired and liabilities assumed include customer relationships valued at €9.4 million. The inventory of these assets and liabilities remains provisional, and the final purchase price allocation period runs until 4 July 2019.

The allocation of goodwill currently breaks down as follows:

It-Economics

(in millions of euros)

Total assets acquired Total liabilities assumed

15.0 -6.6

TOTAL NET ASSETS ACQUIRED/(NET LIABILITIES ASSUMED)

8.4

PURCHASE PRICE

36.3 27.9

GOODWILL

120

SOPRA STERIA REGISTRATION DOCUMENT 2018