Acquisitions made during the period

as at 31 August 2020

The following table sets out the assessment of the fair value of assets and liabilities acquired in the acquisition made by the Group during the period.

The fair value assessments of assets and liabilities acquired and the amounts recognised as goodwill and intangible assets have only been determined provisionally due to the timing of the acquisition and future amendments may impact classification in these categories.

US$'000  Unaudited
Six months
to 31 August
2020 
  
ACQUISITIONS MADE DURING THE PERIOD 
Assets acquired 
Non-current assets  481    
Current assets  3 052    
Current liabilities  (9 152)   
Net assets acquired  (5 619)   
Intangible assets  5 869    
Goodwill  802    
Fair value of acquisitions  1 052    
Purchase consideration 
Cash  7 796    
Total consideration  7 796    
Cash outflow for acquisitions 
Cash and cash equivalents acquired  (900)   
Cash consideration paid  7 796    
   Fair value of acquisition  1 052    
   Allolio&Konrad debt paid to seller (included in current liabilities above) 6 744    
Net cash outflow for acquisitions  6 896    
RECONCILIATION OF GOODWILL 
Opening balance*  241 369    
Acquisitions  802    
Disposals  (1 335)   
Translation  3 030    
Closing balance*  243 866    
* The opening and closing balance of goodwill reflects the gross carrying amount of goodwill. There were no accumulated impairments carried forward.

Effective 1 April 2020, Analysys Mason acquired 100% of the shares in Allolio&Konrad for EUR7 million cash (the equivalent of US$7.8 million ). The consideration paid included EUR6 million to settle debt of Allolio&Konrad with the seller. Allolio&Konrad is a consultancy based in Bonn, Germany with an extensive track record in the telecommunications industry and long-term client relationships with Europe's leading telecom operators. Due to the timing of this acquisition, the acquisition accounting has not been finalised. Acquisition-related costs of EUR0.2 million (the equivalent of US$0.3 million ) have been incurred on this acquisition.

As a result of this acquisition, goodwill and other intangible assets combined increased provisionally by US$6.7 million. None of the goodwill recognised is expected to be deductible for income tax purposes. The revenue and EBITDA included from these acquisitions in H1 FY21 were US$5.1 million and US$2.5 million respectively; profit after tax included from these acquisitions was US$1.4 million. Had the acquisition date been 1 March 2020, the revenue and EBITDA would have been approximately US$6.2 million and US$3.0 million respectively. It is not practical to establish profit after tax that would have been contributed to the Group if they had been included for the entire period.



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