Acquisitions

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements [Abstract]

Acquisitions

Note 5 – Acquisitions

We acquired 100% of the capital stock of Brazil-based RedeTransacoesEletronicas Ltda. (RedeTrel) on January 31, 2013. The purchase price of approximately $27.7million included $25.9 million in cash and the $1.8million acquisition-date fair value of contingent consideration. On the acquisition date, RedeTrel had $10million of cash and cash equivalents that it uses as working capital, resulting in a net cash outflow of $16 million related to the acquisition. RedeTrel distributes electronic prepaid products, including mobile phone airtime, via a network of approximately 20,000 retail locations across Brazil. RedeTrel's strong distribution network supplements Brink's existing payments business, ePago, which has operations in Brazil, Mexico, Colombia and Panama.

We have provisionally estimated fair values for the assets purchased and liabilities assumed as of the date of the acquisition in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price. As a result, the allocation of the purchase price and the amount of goodwill and intangible assets may change in the future.

		Estimated Fair
		Value at
(In millions)		January 31, 2013
Fair value of purchase consideration
Cash paid for 100% of shares	$	25.9
Fair value of contingent consideration		1.8
Fair value of purchase consideration	$	27.7
Fair value of net assets acquired
Cash	$	10.0
Accounts receivable		7.8
Other current assets		19.9
Property and equipment		4.0
Intangible assets(a)		11.8
Goodwill(b)		14.0
Current liabilities		(38.8)
Noncurrent liabilities		(1.0)
Fair value of net assets acquired	$	27.7

• Intangible assets are primarily comprised of agent relationships and contractual agreements with the major Brazilian telecommunications companies. Final allocation will be determined once the valuation is complete.
• Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating RedeTrel'sdistribution network into our existing ePago business. All of the goodwill has been assigned to the Latin America reporting unit and is expected to be deductible for tax purposes.

We acquired the remaining 26% ownership interest in our cash logistics business in Chile for approximately$18million in cash on January 10, 2013.  We now own 100% of this business.