Prior Year Acquisition

9 Months Ended

Sep. 30, 2011

Prior Year Acquisition

Prior Year Acquisition

3. PRIOR YEAR ACQUISITION

On November 30, 2010, we acquired U.K.-based Intec Telecom Systems PLC ("Intec") for $364.1 million, or $255.2 million net of $108.9 million of cash and cash equivalents Intec had on hand at the close of the transaction.

The application of the acquisition method of accounting for business combinations requires the use of significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for Intec (in thousands):

Trade accounts receivable	$	63,276
Other current assets		6,179
Property and equipment		9,968
Acquired software		19,184
Acquired client contracts .		77,979
Acquired other intangible assets		6,395
Goodwill		102,145
Net deferred income tax assets		36,238
Other non-current assets		2,552
Total assets acquired		323,916
Trade accounts payable		3,611
Accrued employee compensation		17,517
Deferred revenue		28,016
Other current liabilities		9,823
Non-current liabilities		9,711
Total liabilities assumed		68,678
Net assets acquired (excluding acquired cash)	$	255,238

The $255.2 million of net assets acquired reflected above has not changed since December 31, 2010. However, we have made certain adjustments to our estimates of the fair value of various assets acquired and liabilities assumed, none of which required the revision of comparative information for periods presented in the accompanying Financial Statements since the effects are not material. In addition, we have made certain adjustments to our estimates of deferred income taxes. As a result of these changes, during 2011, the amount allocated to goodwill has increased by $1.1 million.

The above estimated fair values of assets acquired and liabilities assumed are still considered provisional, as we are waiting for additional information, primarily related to certain items within trade accounts receivable and deferred revenue, necessary to finalize those fair values, and to estimate the valuation allowances necessary for certain deferred income tax assets. Thus, the provisional measurements of fair value set forth above are subject to change. Such changes could be significant. We expect to finalize the fair values and valuation allowances and complete the purchase price allocation during the fourth quarter of 2011.