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Annual Report & Accounts 2013 - NOTES
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10. INTANGIBLE ASSETS continued 10.2 Impairment Tests for Cash-Generating Units Containing Goodwill and Trademarks continued Sportingbet A long-term growth rate of 3% has been applied to reflect the likely competitive pressures from other large online gaming companies. A discount rate of 20% was used and a sensitivity analysis carried out including increasing the discount to 30%. It was concluded that the carrying value of the goodwill and trademarks was not impaired. The following units have significant carrying amounts of goodwill: 2013 2012 €000's €000's Betboo 8,333 8,333 CasinoClub 40,339 40,339 Sportingbet 84,221 - Total Goodwill 132,893 48,672 11. ACQUISITION OF SPORTINGBET PLC AND GOMIFER S.A 11.1 Sportingbet PLC On 19 March 2013, the Group completed the acquisition of Sportingbet PLC in order to acquire market-leading software, and customers in over 20 additional markets. Under a court approved Scheme of Arrangement, it excluded the Australian business of Sportingbet which was acquired by William Hill PLC. References to Sportingbet in this statement exclude Australia. GVC Holdings PLC are identified as the acquirer in accordance with IFRS 3. The Group issued 29,018,075 shares at 248p* as consideration, booked at 19 March 2013 exchange rate of £1 = €1.1661, this amounted to €83,918,184 to acquire 100% of the issued share capital of Sportingbet PLC. *In accordance with IFRS3 - Business Combinations, the price at the date of completion of the acquisition on 19 March 2013 is used as the basis for the fair value of consideration transferred. The fair value of consideration comprised the following: €000's Fair value of consideration transferred 83,918 Recognised amounts of identifiable net assets: Non-current assets Useful economic life - Property, plant and equipment 3 years 165 - Intangible assets 3 years 769 - Trade names 5 years 946 - Customer list 2 years 675 - Software 3 years 4,187 - Goodwill Indefinite 84,221 90,963 Current assets - Trade and receivables 21,700 - Cash and cash equivalents* 64,792 86,492 Current liabilities - Trade and other payables (55,066) - Bank borrowings and similar (31,384) - Income taxes payable (820) - Other taxation liabilities (6,267) (93,537) Net current liabilities (7,045) Net position 83,918 *includes €42,562,000 (£36,500,000) received from William Hill PLC as a contribution into the scheme of arrangement pool towards the settlement of acquisition liabilities in the Sportingbet Group. ANNUAL REPORT 2013 46 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued for the year ended 31 December 2013