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1.3.2. LVS<br />
1.3.2.1. Acquisition of controlling interest in LVS<br />
To strengthen its technological expertise in online gaming, on<br />
23 March 2010 la <strong>Française</strong> <strong>des</strong> <strong>Jeux</strong> acquired UK software<br />
publisher LVS (Laverock von Schoultz). Based in London and an<br />
expert in Internet technologies, LVS is a European benchmark<br />
as a supplier of betting software platforms. Notably, it worked<br />
with la <strong>Française</strong> <strong>des</strong> <strong>Jeux</strong> to set up its new online sports betting<br />
offer, ParionsWeb, which was launched in November 2009. This<br />
confi rmed the Group’s positioning as an integrated operator in<br />
the fi eld of sports betting. In the retail network as on the<br />
Internet, this acquisition helps to ensure that the offer is highly<br />
responsive to players’ expectations, and to provide them with<br />
the highest level of security.<br />
Historic<br />
value<br />
In thousands of poundsIn thousands of euros<br />
Revaluation Initial measurement on<br />
entry in the FDJ Group<br />
Non-current assets 902,7502,8401053,1953,299<br />
Trade receivables 551-551640-640<br />
Other receivables 26-2630-30<br />
Total assets 6672,7503,4177753,1953,970<br />
Net debt 36-3642-42<br />
Trade payables 479-479556-556<br />
Other payables 1947709642258951,120<br />
Total liabilities 7097701,4798248951,718<br />
Net assets acquired - 421,9801,938- 492,3002,252<br />
1.3.2.2. Acquisition value<br />
Acquisition cost 5,2926,267<br />
Translation adjustment -- 105<br />
Goodwill 3,3543,910<br />
Note: based on a €/£ conversion rate of 0.860750.<br />
LA FRANÇAISE DES JEUX — 31<br />
The acquisition cost is broken down as follows:<br />
– an upfront payment of £2.7m for the acquisition of LVS securities<br />
– additional payments, subject to continuous service conditions<br />
for the management and/or financial and non-financial<br />
performance conditions for the company.<br />
1.3.2.3. Appropriation of the acquisition cost<br />
The assets, liabilities, contingent assets and contingent liabilities<br />
of LVS that meet the criteria for recognition under the revised<br />
IFRS 3 were recorded in the opening balance sheet at their fair<br />
value on 23 March 2010.<br />
After taking into account the fair values of assets and liabilities,<br />
the aggregate opening balance sheet of LVS at 22 March 2010<br />
was as follows:<br />
Historic<br />
value<br />
RevaluationInitial measurement<br />
on entry in the FDJ<br />
Group<br />
Additional payments amounting to €2.6m were treated as earn-out payments under revised IFRS 3, and as future payments for<br />
services rendered post-transaction, recognised under IAS 19. Bonus compensation was estimated at £2.2m, amortised over the vest ing<br />
periods.
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