2. Acquired business operations

Notes to the Consolidated Financial Statements

2. Acquired business operations

On 1 July 2016, Digia acquired the entire share capital of Igence Oy Ab, a webshop expert. With this acquisition, Digia expanded its current offering and expertise, especially in solutions for webshops and commercial product data management. The figures for the acquired business have been consolidated with Digia’s result as from 1 July 2016. With the acquisition, 24 employees in Finland were transferred to the company’s employ. The purchase price of EUR 2.1 million was paid in cash. The transaction also includes an additional purchase price of no more than EUR 1.5 million. The additional purchase price will be determined on the basis of the net sales of the acquired business in 2017. Management estimates that the additional purchase price will be paid in full. The value of customer contracts will be amortised over seven years from the date of acquisition.

 

Values of the acquired businesses on the acquisition date, € 000  
Intangible assets 4
Accounts receivable and other receivables 361
Cash and cash equivalents 76
Total assets 440
   
Accounts payable and other liabilities 425
Total liabilities 425
   
Net assets 15
Goodwill 2,572
Value of customer contracts 940
   
Acquisition cost 3,527
 
 
Cash flow effect of the acquired businesses, € 000  
Acquisition cost -3,527
Cash and cash equivalents 76
Additional purchase price 1,500
Acquisition-related costs and taxes -52
Net cash flow of acquisition -2,003