This excerpt taken from the EBIX 10-K filed Apr 10, 2007.
On October 2, 2006, Ebix, Inc. (Ebix) announced the merger with Finetre Corporation (Finetre) effective October 1, 2006. Ebix has paid Finetre shareholders $13,000 for substantially all of Finetre stock, and Finetre shareholders retain the right to earn up to $3,000 in additional payments over two years if certain revenue and operating income targets of the Finetre services are met. Finetre operates as a Northern Virginia-based ASP technology firm focusing on transaction processing and compliance automation in the financial services industry.
The Company also incurred approximately $365 of direct expenses related to closing the Finetre acquisition. The Company funded the acquisition using available cash on hand of $2,000 as well as the $11,000 line of credit.
The acquisition of Finetre was consistent with the Companys overall focus on providing software solutions to insurance carriers agents and brokers. This acquisition increased sales and revenue of the consolidated total while providing significant sales opportunities for the Companys other existing services.
Ebix, Inc. and Subsidiaries
Note 13Acquisitions (Continued)
Concurrent with the acquisition, the Company ascribed a preliminary value to each of the assets and liabilities assumed from the acquisition of Finetre. The following table summarizes the fair value of the Infinity assets acquired and liabilities assumed at the date of acquisition subsequent to the reallocation.
Of the $3,391 of intangible assets acquired, $2,346 was assigned to customer relationships with a remaining useful life of nine years, $896 was assigned to developed technology with a remaining useful life of 5 years, $140 was assigned to backlog with a remaining estimated useful life of fourteen months and $9 assigned to IPR&D which was expensed immediately. The Company recorded $139 of amortization expense related to these intangible assets for the year ended December 31, 2006.