G4S Annual Report and Accounts 2011

Governance Financial statements Shareholder information
17 Acquisitions
Current year acquisitions
The group undertook a number of business combinations in the current period. Principal acquisitions in subsidiary undertakings include the purchase
of a 100% interest in a facilities services business in Brazil; Munt Centrale Holland B.V., a coin management service company based in the Netherlands, and
The Cotswold Group Limited, the UK’s market leader in surveillance, fraud analytics, intelligence and investigations services. The group also acquired the
offender monitoring technology operations of Guidance Limited and customer contracts from Chubb Group Security Limited.
The group completed the buy out of its Turkish business during the year, which has been accounted for in equity.
A summary of the provisional fair value of net assets acquired by geographical location is presented below:
Europe
£m
Developing
markets
£m
Provisional fair value of net assets acquired of subsidiary undertakings 36 16 52
Goodwill 25 60 85
Total purchase consideration 61 76 137
Total
group
£m
The following table sets out the provisional fair value to the group in respect of all acquisitions made in the year:
Fair value
£m
Intangible assets 66
Property, plant and equipment 8
Inventories 3
Trade and other receivables 18
Allowance for doubtful debts (1)
Cash and cash equivalents 13
Trade and other payables (29)
Current tax liabilities (1)
Provisions (1)
Borrowings (5)
Deferred tax liabilities (19)
Net assets acquired of subsidiary undertakings 52
Goodwill 85
Total purchase consideration 137
Satisfied by:
Cash 130
Deferred consideration 7
Total purchase consideration 137
Deferred consideration in respect of acquisitions made in 2011 has been recognised at the amount which is expected to be paid in the future, being £7m
(equal to its discounted present value). The amount of deferred consideration which will be paid is in part dependent upon the future performance of the
acquired businesses. The maximum undiscounted amount of deferred consideration which could be payable is £8m.
G4S plc
Annual Report and Accounts 2011
93