REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

32. Acquisitions and disposalsDuring 1999 Reuters acquired a number of subsidiary undertakings including a 100% shareholding in MarketNet and majority shareholdings in VentureOne andTowerGroup Holdings. Investments in associated undertakings and joint ventures included Dow Jones Reuters Business Interactive LLC (trading as Factiva).The cost, consolidated net assets and goodwill arising were as follows:SUBSIDIARY UNDERTAKINGSJOINT VENTURES/BOOK FAIR VALUE ASSOCIATEDVALUE ADJUSTMENTS NET UNDERTAKINGS TOTAL£M £M £M £M £MTangible fixed assets 1 – 1 – 1Fixed asset investments – – – 7 7Current assets:Cash 8 – 8 – 8Other 9 – 9 – 9Short-term creditors (12) – (12) – (12)Net assets acquired 6 – 6 7 13Paid in the year:Cash 31 6 37Assets – 4 4Deferred 6 13 19Goodwill 31 16 47Contribution to group revenue of acquisitions made during 1999 was immaterial. Had these companies been acquired on 1 January 1999, their impact on thegroup’s results would have been immaterial.Partial disposal of TIBCO Software Inc.In July 1999 TIBCO Software Inc. completed an Initial Public Offering (IPO) generating net proceeds of £78 million. Reuters did not sell any of its shares in theoffering and reduced its holding from 95% (excluding non-equity stock) to 62% on an undiluted basis. Reuters voting rights are restricted to a maximum of 49%and accordingly TIBCO Software Inc. is now being accounted for as an associated undertaking.The IPO generated an accounting profit of £52 million calculated as follows:Increased value of Reuters share of net assets 56Goodwill write-off (4)£M52Reuters Group PLC Annual Report 1999 69