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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2
ACQUISITIONS
On March 1, 2011, the Company completed the acquisition of a
controlling interest in Loyalty Partner. Loyalty Partner is a
leading marketing services company best known for the loyalty
programs it operates in Germany, Poland and India. Loyalty
Partner also provides market analysis, operating platforms and
consulting services that help merchants grow their businesses.
Total consideration was $616 million ($585 million plus $31
million in cash acquired). The Company has an option to
acquire the remaining noncontrolling equity interest (NCI)
over a three-year period beginning at the end of 2013 at a price
based on business performance, which had an estimated fair
value of $150 million at the acquisition date.
In 2010, the Company purchased Accertify and Revolution
Money for a total consideration of $151 million and $305
million, respectively. Accertify is an online fraud solution
provider and Revolution Money, which was subsequently
rebranded by the Company as Serve, is a provider of secure
person-to-person payment services through an internet-based
platform.
These acquisitions did not have a significant impact on either
the Company’s consolidated results of operations or the
segments in which they are reflected for the years ended
December 31, 2011 and 2010.
The following table summarizes the assets acquired and liabilities
assumed for these acquisitions as of the acquisition dates:
(Millions)
Loyalty
Partner(a) Accertify
Revolution
Money(b)
Goodwill $ 538 $ 132 $ 184
Definite-lived intangible assets 295 15 119
Other assets 206 10 7
Total assets 1,039 157 310
Total liabilities (including NCI) 423 6 5
Net assets acquired $ 616 $ 151 $ 305
Reportable operating segment ICS GNMS
(a) Amounts have been updated in the interim quarters of 2011 by revisions to
the preliminary purchase price allocation. The final purchase price
allocation for Loyalty Partner, which is not expected to be significantly
different from the estimate at the date of acquisition, will be completed in
the first quarter of 2012.
(b) Included in Corporate & Other.
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