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1 INTERMEDIX HOLDINGS INC. AND SUBSIDIARIES <br />Notes to Consolidated Financial Statements <br />December 31, 2010 <br />Purchase Price Allocation of Merger <br />The following table summarizes the consideration paid along with the allocation of the purchase price paid <br />to acquire the Predecessor at August 23, 2010 (in thousands): <br />Consideration: <br />Cash <br />Equity <br />Fair value of total consideration transferred <br />Recognized amounts of identifiable assets acquired and liabilities assumed: <br />Current assets <br />Property and equipment <br />Computer software and technology development costs <br />Other intangible assets <br />Other assets <br />Deferred income taxes <br />Current liabilities, including current portion of capitalized lease obligations <br />of $238 and current deferred revenue of $5,888 <br />Noncurrent debt <br />Deferred income taxes <br />Other noncurrent liabilities <br />Total identifiable net assets acquired <br />Total <br />$ 548,103 <br />14,397 <br />$ 562,500 <br />$ 44,055 <br />12,246 <br />5,733 <br />290,560 <br />553 <br />3,066 <br />(24,702) <br />(81) <br />(91,577) <br />(145) <br />239,708 <br />Goodwill <br />322,792 <br />Total $ <br />562,500 <br />Other intangible assets included above consist of the following amounts by major <br />intangible asset class: <br />Customer - related $ <br />244,400 <br />Technology -based <br />35,860 <br />Marketing - related <br />10,300 <br />$ 290,560 <br />Intangible assets of $290.6 million include the established customer relationships, technologies, and <br />trademarks of the Predecessor. All of the acquired intangibles, other than goodwill, are amortizable. See <br />note 8 for further disclosure. None of the goodwill recorded in connection with the Merger is deductible <br />for income tax purposes, however the Company will be able to recognize tax deductions related to <br />goodwill which carried over for tax purposes from the Predecessor. <br />(2) Description of Business <br />The Company provides revenue cycle management (RCM) services and technology based solutions to the <br />emergency medical industry through its RCM Services and Technology operating divisions. The RCM <br />Services division is engaged in providing technology -based business services to emergency medical and <br />(Continued) <br />