Acquisitions

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Acquisitions

Acquisitions

2020 Acquisitions

On August 10, 2020, the Company completed the acquisition of a business in the lodging space in the U.S. The Company financed the acquisition using a combination of available cash and borrowings under its existing credit facility. The results from the acquisition are reported in the North America segment. In connection with this acquisition, the Company signed noncompete agreements with certain parties affiliated with the business with an estimated fair value of $3.8 million. These noncompete agreements were accounted for separately from the business acquisition.

The following table summarizes the acquisition accounting (in thousands):

Accounts and other receivables	$	6,027
Prepaid expenses and other current assets	983
Property and equipment	3,167
Other assets	1,290
Goodwill	23,593
Other intangibles	36,900
Current liabilities	(1,127)
Other noncurrent liabilities	(782)
Aggregate purchase price	$	70,051

The estimated fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands):

	Useful Lives (in Years)	Value
Trade Name and Trademarks	5	$	1,800
Licensed Software and Technology	10	4,400
Proprietary Technology	5	8,400
Supplier Network	10	300
Customer Relationships	16	22,000
		$	36,900

The accounting for these acquisitions is preliminary as the Company is still completing the valuation of goodwill, intangible assets, income taxes and evaluation of acquired contingencies.

Other

On September 17, 2020, the Company signed a definitive agreement to acquire Associated Foreign Exchange (AFEX), a cross-border payment solutions provider, for approximately $450 million. The transaction is expected to close in 2021, subject to regulatory approval and standard closing conditions.

2019 Acquisitions

NvoicePay

On April 1, 2019, the Company completed the acquisition of NvoicePay, a provider of full accounts payable automation for businesses. The aggregate purchase price of this acquisition was approximately $208 million, net of cash acquired of $4.1 million. This acquisition further expands the Company's corporate payments product offering. The Company financed the acquisition using a combination of available cash and borrowings under its existing credit facility. The results from NvoicePay are reported in the North America segment. Along with the acquisition of NvoicePay, the Company signed noncompete agreements with certain parties with an estimated fair value of $10.7 million that were accounted for separately from the business acquisition.

The following table summarizes the acquisition accounting for NvoicePay (in thousands):

Accounts and other receivables	$	1,513
Prepaid expenses and other current assets	396
Property and equipment	1,030
Other assets	5,612
Goodwill	168,990
Other intangibles	44,750
Current liabilities	(4,415)
Other noncurrent liabilities	(6,130)
Deferred income taxes	(4,178)
Aggregate purchase price	$	207,568

The estimated fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands):

	Useful Lives (in Years)	Value
Trade Name and Trademarks	Indefinite	$	8,700
Proprietary Technology	6	15,600
Referral Partners	10	810
Supplier Network	10	2,640
Customer Relationships	20	17,000
		$	44,750

Other

During 2019, the Company acquired SOLE Financial, a payroll card provider in the U.S., r2c, a fleet maintenance, compliance and workshop management software provider in the U.K., and Travelliance, an airline lodging provider in the U.S. The aggregate purchase price of these acquisitions was approximately $207 million, net of cash. The Company signed noncompete agreements with certain parties with an estimated fair value of $9.0 million that were accounted for separately from the business acquisitions.

The following table summarizes acquisition accounting for the SOLE, r2c, and Travelliance acquisitions (in thousands):

Accounts and other receivables	$	91,457
Prepaid expenses and other current assets	1,833
Property and equipment	922
Other assets	8,650
Goodwill	121,460
Other intangibles	80,726
Current liabilities	(78,473)
Other noncurrent liabilities	(4,657)
Deferred taxes	(15,245)
Aggregate purchase price	$	206,673

The accounting for the Travelliance acquisition is preliminary and subject to working capital adjustments.