Acquisitions

9 Months Ended

Sep. 30, 2011

Acquisitions [Abstract]

Acquisitions

9. Acquisitions

Zokem Oy. On July 28, 2011, a wholly-owned subsidiary of the Company acquired Zokem Oy, a Finland-based mobile audience measurement and analytics firm now known as Arbitron Mobile. The purchase price was $10.6 million in cash plus a contingent consideration arrangement with an estimated fair value of approximately $0.9 million. The agreement provides for possible additional cash payments to be made through 2015 of up to $12.0 million, which are contingent upon Zokem reaching certain financial performance targets in the future. The $0.9 million fair value estimate was determined by applying the income approach methodology. The key assumptions used in the fair value valuation include a probability-weighted range of performance targets for the 4–year measurement period of 2012 through 2015 and an adjusted discount rate. The Company will periodically reassess the fair value of the contingent consideration.

The following table shows the preliminary assets and liabilities acquired (in thousands):

Asset and liabilities acquired	Amount
Trade receivables	$	334
Computer equipment		31
Other intangible assets
Acquired software and trademarks		5,313
Non-compete agreement		238
Customer relationships		1,504
Total assets		7,420
Accounts payable		(130	)
Other current liabilities		(197	)
Noncurrent liabilities		(1,172	)
Net assets acquired		5,921
Goodwill		5,623
Total purchase price, net of cash acquired	$	11,544

As of September 30, 2011, the purchase price allocation and related goodwill estimate are preliminary amounts that will be adjusted in the future for certain working capital and tax-related adjustments. The other intangible assets are being amortized over a weighted average life of 5.3 years. The amount of acquisition-related costs incurred and charged to selling, general and administrative expense during the nine-month period ended September 30, 2011, was $0.6 million.

Integrated Media Measurement, Inc. On June 15, 2010, a wholly-owned subsidiary of the Company purchased the technology portfolio, trade name, and equipment of Integrated Media Measurement, Inc. The Company paid $2.5 million for these assets, which included $1.8 million of other intangible assets, $0.3 million of computer equipment, and $0.4 million of goodwill. The other intangible assets are being amortized over 5.0 years.

Digimarc Corporation. On March 23, 2010, the Company entered into a licensing arrangement with Digimarc Corporation (“Digimarc”) to receive a non-exclusive, worldwide and irrevocable license to a substantial portion of Digimarc’s domestic and international patent portfolio. The Company paid $4.5 million for this other intangible asset, which is being amortized over 7.0 years.

Future amortization expense of the Company’s $12.2 million of other intangible assets recorded on the consolidated balance sheet as of September 30, 2011, is estimated to be as follows:

	Amount
3-Month Period Ended December 31, 2011	$	634
2012		2,537
2013		2,487
2014		2,419
2015		2,186
2016		1,466
Thereafter		494
Total	$	12,223