5 2020 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements
Sopra Financial Technology GmbH – On 2 August 2019, Sopra Steria Group – the Group’s parent company – acquired 51% of the p share capital of Sopra Financial Technology GmbH, the entity tasked by German banking network Sparda’s cooperative banks with the development, maintenance and operation of their shared information system.
The identification of assets acquired and liabilities assumed has now been completed, leading to the measurement and recognition of €8.0 million in enterprise software. The performance of Sopra Financial Technology GmbH is individually monitored and Sopra Steria’s management identifies it
as a distinct reporting unit. Due to its operational characteristics, it constitutes its own cash-generating unit, which is included in the “Other Europe” group.
The allocation of goodwill breaks down as follows:
26 5244276: 7/ .<97:
Total assets acquired Total liabilities assumed
Total net assets acquired/(net liabilities assumed)
32.1 15.7 22.6
Minority interests Purchase price
Other – On 10 January 2020 the Group, via its subsidiary Galitt, acquired 100% of ADN’co, a French consulting firm specialising in the p payment systems market. The assets acquired and liabilities assumed totalled €0.2 million, and goodwill totalled €2.0 million.
On 2 March 2020, the Group acquired cxpartners, a UK-based liabilities assumed totalled -€0.1 million, and provisional goodwill consultancy specialising in customer experience and user-centred totalled €5.8 million. design, via its subsidiary Sopra Steria Ltd. The assets acquired and
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. The Group recognises all business combinations by applying the acquisition method, which consists in: the measurement and recognition at fair value of the p 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; the measurement of any non-controlling interest in the p acquiree either at its fair value or based on its share of the fair value of the identifiable assets acquired and liabilities assumed; the measurement and recognition at the acquisition date of p 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 of 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.
Other changes in scope 2.2. In 2020, no other material changes in scope took place.
On 28 June 2019, the Group sold 100% of its recruitment subsidiary in the United Kingdom, Sopra Steria Recruitment Ltd. It recorded a gain on disposal of €1.4 million, net of costs to sell, which is shown under Other non-current operating income and expenses (see Note 4.2).