10. BUSINESS ACQUISITIONS
2016
On January 7, 2016, the Corporation acquired Fibrenoire Inc., a company that provides businesses with fibre-optic connectivity services, for a purchase price of $125.0 million. At closing, the Corporation paid an amount of $119.1 million, net of cash acquired of $1.8 million. A post-closing adjustment of $0.2 million was received in the second quarter of 2016. The purchase price balance was paid in February 2017 for an amount of $5.6 million plus interests of $0.3 million.
2015
On March 11, 2015, the Corporation acquired 4Degrees Colocation Inc. (“4Degrees Colocation”) and its data center, the largest in Québec City, for a purchase price of $35.5 million in cash. A post-closing adjustment of $0.2 million was received in the second quarter of 2015. The acquisition enables the Corporation to meet its business customers’ growing technological and hosting needs.
The purchase price allocation between the fair value of identifiable assets and liabilities related to business acquisitions in 2016 and 2015 is summarized as follows:
|
|
|
2016 |
|
2015 |
|
||
|
|
|
|
|
|
|
||
|
Assets acquired |
|
|
|
|
|
||
|
Non-cash current assets |
|
$ |
5,387 |
|
$ |
130 |
|
|
Property, plant and equipment |
|
32,679 |
|
11,181 |
|
||
|
Intangible assets |
|
15,574 |
|
5,074 |
|
||
|
Goodwill |
|
87,068 |
|
19,612 |
|
||
|
Other assets |
|
42 |
|
— |
|
||
|
|
|
|
|
|
|
||
|
|
|
140,750 |
|
35,997 |
|
||
|
Liabilities assumed |
|
|
|
|
|
||
|
Non-cash current liabilities |
|
(3,112 |
) |
(463 |
) |
||
|
Deferred income taxes |
|
(7,496 |
) |
(367 |
) |
||
|
Other long-term liabilities |
|
(5,643 |
) |
— |
|
||
|
|
|
|
|
|
|
||
|
|
|
(16,251 |
) |
(830 |
) |
||
|
|
|
|
|
|
|
||
|
Net assets acquired at fair value |
|
$ |
124,499 |
|
$ |
35,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Consideration |
|
|
|
|
|
||
|
Cash, net of cash acquired |
|
$ |
118,946 |
|
$ |
35,167 |
|
|
Balance payable |
|
5,553 |
|
— |
|
||
|
|
|
|
|
|
|
||
|
|
|
$ |
124,499 |
|
$ |
35,167 |
|
|
|
|
|
|
|
|
|
|
The goodwill that was recorded is not deductible for tax purposes.