Question
Consider the data listed below and compute the total purchase price paid for the assets in the transaction. Cash Paid $200,000,000 Fair Value of Stock
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Consider the data listed below and compute the total purchase price paid for the assets in the transaction.
Cash Paid
$200,000,000
Fair Value of Stock based on stock price on date of deal closing
$293,040,000
Fair Value of Stock based on stock price on date of deal announcement
$211,640,000
Fair Value of Earnout
$48,970,000
Net Book Value of the Assets
$204,000,000
Long-term Debt Assumed
$77,000,000
Other Liabilities Assumed
$34,000,000
Net Income
$31,760,000
Value of replacement stock option awards attributable to precombination services
$5,000,000
Value of replacement stock option awards attributable to post combination services
$7,000,000
Acquisition related costs
$4,000,000
The computed total purchase price paid for the assets in the transaction is:
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ICSA Study Text In Management Accounting
Authors: Richard Lyall
4th Edition
186072308X, 978-1860723087
