Page 82 - Paragon Annual Report 2

78 | Group financial statements
Notes to the consolidated financial statements (continued) 11 Acquisitions
Acquisition of DST Output Ltd
On the 4 May 2017 the Group acquired the entire DST Output Ltd group of companies in the UK (DST CC).
DST CC group consists of 13 companies and is the UK’s leading print and digital communications services company specialising in the production and distribution of regulatory and transactional (e.g bank statements and terms & conditions documents) and direct marketing communications (e.g vouchers and direct mailers) for blue-chip clients primarily in the Financial services, Telecommunications, Utilities and Retail sectors.
In calculating the goodwill arising on these acquisitions, the fair value of the assets and liabilities has been assessed and adjustments to book value have been made where necessary. The fair value assets and liabilities are summarised in the following table.
Property, plant and equipment Software
Customer relationships Financial investments Non-current assets Inventories
Trade and other receivables Cash and cash equivalent Income tax receivable Current assets
Total assets
Trade and other payables Borrowings
Finance lease
Provision – dilapidations Provisions – rent free period Deferred tax liabilities
Total liabilities
Net assets
Fair value of consideration
Gain on acquisition (note 8)
The fair value of property, plant and equipment and customer relationships was based on an external valuation prepared by specialists with the direct experience of the types of assets concerned.
This is a strategic acquisition for the Group in the channel-agnostic services in regulatory and transactional communications and direct marketing, fulfilled through print, data & digital solutions and response handling sectors.
The estimated annual impact of this acquisition had it been made at the start of the financial year would have been revenue of €192,400,000 and EBITDA of €10,100,000.
Fair value
€000
13,919
450
15,373
359
30,101
4,989
40,100
3,653
200
48,942
79,043
22,482
30,729
1,981
2,749
1,394
59,367
32
19,676
9,569
(10,107)
Paragon Group Limited – 05258175