Acquisitions

9 Months Ended

Sep. 30, 2011

Acquisitions

2. Acquisitions

ISD Holdings, Inc.

On March 18, 2011, the Company closed the acquisition of ISD Holdings, Inc. and its 100% owned subsidiary ISD Corporation (collectively “ISD”). ISD’s suite of products enables retailers to consolidate, manage, secure and route all electronic transactions from their point-of-sale systems to third-party processors for authorization and settlement.

The aggregate purchase price of ISD was $19.2 million, after working capital adjustments in accordance with the terms of the purchase agreement, which included cash acquired of $2.4 million. The allocation of the purchase price to specific assets and liabilities was based on the relative fair value of all assets and liabilities.

In connection with the acquisition, the Company recorded the following amounts based upon its preliminary purchase price allocation during the nine months ended September 30, 2011 (in thousands, except weighted-average useful lives):

		September 30,			September 30,
	Amount			Weighted- Average Useful Lives
Cash	$	2,375
Accounts Receivable		2,030
Other current assets		958
Total current assets acquired		5,363
Noncurrent assets:
Property and equipment		519
Goodwill		11,380
Intellectual property rights		2,338			5 years
Customer relationships		4,059			9 years
Trade name		247			5 years
Total assets acquired		23,906
Current liabilities acquired		(4,681	)
Net assets acquired	$	19,225

Factors contributing to the purchase price that resulted in the goodwill (which is not tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the Company. Pro forma results are not presented because they are not material.