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G4S Annual Report and Accounts 2011

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Governance Financial statements Shareholder information<br />

17 Acquisitions<br />

Current year acquisitions<br />

The group undertook a number of business combinations in the current period. Principal acquisitions in subsidiary undertakings include the purchase<br />

of a 100% interest in a facilities services business in Brazil; Munt Centrale Holl<strong>and</strong> B.V., a coin management service company based in the Netherl<strong>and</strong>s, <strong>and</strong><br />

The Cotswold Group Limited, the UK’s market leader in surveillance, fraud analytics, intelligence <strong>and</strong> investigations services. The group also acquired the<br />

offender monitoring technology operations of Guidance Limited <strong>and</strong> customer contracts from Chubb Group Security Limited.<br />

The group completed the buy out of its Turkish business during the year, which has been accounted for in equity.<br />

A summary of the provisional fair value of net assets acquired by geographical location is presented below:<br />

Europe<br />

£m<br />

Developing<br />

markets<br />

£m<br />

Provisional fair value of net assets acquired of subsidiary undertakings 36 16 52<br />

Goodwill 25 60 85<br />

Total purchase consideration 61 76 137<br />

Total<br />

group<br />

£m<br />

The following table sets out the provisional fair value to the group in respect of all acquisitions made in the year:<br />

Fair value<br />

£m<br />

Intangible assets 66<br />

Property, plant <strong>and</strong> equipment 8<br />

Inventories 3<br />

Trade <strong>and</strong> other receivables 18<br />

Allowance for doubtful debts (1)<br />

Cash <strong>and</strong> cash equivalents 13<br />

Trade <strong>and</strong> other payables (29)<br />

Current tax liabilities (1)<br />

Provisions (1)<br />

Borrowings (5)<br />

Deferred tax liabilities (19)<br />

Net assets acquired of subsidiary undertakings 52<br />

Goodwill 85<br />

Total purchase consideration 137<br />

Satisfied by:<br />

Cash 130<br />

Deferred consideration 7<br />

Total purchase consideration 137<br />

Deferred consideration in respect of acquisitions made in <strong>2011</strong> has been recognised at the amount which is expected to be paid in the future, being £7m<br />

(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<br />

acquired businesses. The maximum undiscounted amount of deferred consideration which could be payable is £8m.<br />

<strong>G4S</strong> plc<br />

<strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Accounts</strong> <strong>2011</strong><br />

93

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