Business Acquisition

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisition of a Business

On February 16, 2023, the Company closed on the acquisition of 100% of Paysmart Pagamentos Eletronicos Ltda (“paySmart”). Headquartered in Porto Alegre, Brazil, paySmart provides issuer processing services and BIN Sponsorship services for prepaid programs under domestic and international schemes in Brazil. The aggregate purchase price was $130 million Brazilian reais, approximately USD$25 million. The acquisition expands the Company's footprint in Brazil and compliments the current product offering in the country.

The Company accounted for this transaction as a business combination. The following table details the preliminary fair value of assets acquired and liabilities assumed from the paySmart acquisition:


	Preliminary Assets/Liabilities (at fair value)
( In thousands)
Cash and cash equivalents	$	2,037
Accounts receivable, net	451
Prepaid expenses and other assets	58
Property and equipment, net	107
Operating lease right-of-use asset	182
Goodwill	9,735
Settlement assets	52,593
Other intangible assets, net	15,174
Total assets acquired	80,337
Accounts payable	278
Settlement liabilities	50,368
Operating lease liability	185
Income tax payable	298
Deferred tax liability	4,253
Total liabilities assumed	$	55,382

The following table details the major groups of intangible assets acquired and the weighted average amortization period for these assets:


	Amount		Weighted-average life
(Dollar amounts in thousands)

Customer relationships	$	10,239	20
Trademark	1,299		5
Software packages	3,636		5
Total	$	15,174	15

Refer to Note 6- Goodwill and Other Intangible Assets for detail of goodwill allocated by reportable segments. The goodwill is primarily attributed to anticipated synergies. Currently, none of the goodwill is deductible for income tax purposes.