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Annual Report & Accounts 2013 - NOTES
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The receivables acquired (which principally comprised trade receivables) in the acquisition with a fair value of €21.7 million had gross contractual amounts of €21.7 million. The best estimate at acquisition date of the contractual cash flows not expected to be collected were €21.7 million. Goodwill Goodwill of €84,221,000 is primarily related to expected future profitability following the restructuring of Sportingbet, growth expectations from utilising the Sportingbet software platform throughout the group including the provision of services to B2B partners and expected cost synergies. Pre-existing relationships In considering the impact of the acquisition of Sportingbet and its contracts with East Pioneer Corporation ("EPC") with whom the group had pre-existing contracts relating to the Superbahis business, the group re-evaluated its contract with EPC in accordance with IFRS 3. In so doing it considered the services provided, the risks associated with the provision of those services and the expected financial reward for their provision and concluded the existing contract remained on terms no more or less favourable to market conditions than on its outset. Therefore, no gain or loss on settlement is recognised in profit or loss. Transaction costs As part of the transaction costs the Group incurred €6,398,000 of legal and professional fees in acquiring the business. These costs have been excluded from the consideration transferred and have been recognised as an expense in profit or loss in the current year within 'exceptional items'. See note 4.1 for details. Contribution to Group results Sportingbet recorded total revenue of €74.7m and generated a Clean EBITDA of €4.7 million and incurred a loss before tax of €15.7 million for the period from acquisition to 31 December 2013. If Sportingbet had been acquired on 1 January 2013, Group revenue for the year would have increased by €27.3 million and it would have contributed an additional loss before tax of €8.4 million. 11.2 Gomifer S.A. On 1 October 2013 following the migration of the Betboo business to the Sportingbet trading platform (see note 12), the Group acquired Gomifer S.A. from the founders of the Betboo business for $1 plus the net asset value of the business at the date of transfer. The fair value of net assets acquired are as follows: €000's Non-current assets Useful economic life - Property, plant and equipment 3 years 23 - Intangible assets 3 years 11 34 Current assets - Trade and receivables 61 - Cash and cash equivalents 14 75 Current liabilities - Trade and other payables (58) Net current assets 17 Net assets acquired 51 11.3 Net Cash Acquired Through Acquisition The net cash acquired through acquisition is show below: €000's Sportingbet PLC acquisition 64,792 Gomifer S.A. acquisition 14 Gomifer S.A consideration (51) 64,755 GVC HOLDINGS PLC ANNUAL REPORT 2013 47 NOTES TO THE FINANCIAL STATEMENTS