Nokia 2006 Annual Report Download - page 166

Notes to the Consolidated Financial Statements (Continued)
9. Acquisitions
On February 10, 2006, the Group completed its acquisition of all of the outstanding common stock of
Intellisync Corporation. Intellisync is a leader in synchronization technology for platformindependent
wireless messaging and other business applications for mobile devices. The acquisition of Intellisync
will enhance Nokia’s ability to respond to its customers and effectively puts Nokia at the core of any
mobility solution for businesses of all sizes. Intellisync reported revenues of USD 59 million (EUR
47 million) and net loss of USD 13 million (EUR 11 million) for the year ended July 31, 2005.
Intellisync’s contribution to revenue and net profit is not material to the Group.
The total cost of the acquisition was EUR 325 million consisting of EUR 319 million of cash and
EUR 6 million of costs directly attributable to the acquisition.
The following table summarises the estimated fair values of the assets acquired and liabilities
assumed at the date of acquisition. The fair value of intangible assets has been determined with the
assistance of an independent third party valuation specialist. The carrying amount of Intellisync net
assets immediately before the acquisition amounted to EUR 50 million.
February 10, 2006
EURm
Intangible assets subject to amortization:
Technology related intangible assets ****************************************** 38
Other intangible assets ****************************************************** 22
60
Deferred tax assets ********************************************************** 45
Other noncurrent assets ***************************************************** 16
Noncurrent assets ********************************************************** 121
Goodwill ******************************************************************* 290
Current assets ************************************************************** 42
Total assets acquired******************************************************* 453
Deferred tax liabilities ******************************************************* 23
Other noncurrent liabilities ************************************************** 1
Noncurrent liabilities******************************************************** 24
Current liabilities************************************************************ 104
Total liabilities assumed *************************************************** 128
Net assets acquired ******************************************************** 325
The goodwill of EUR 290 million has been allocated to the Enterprise Solutions segment. The
goodwill is attributable to assembled workforce and the significant synergies expected to arise
subsequent to the acquisition. None of the goodwill acquired is expected to be deductible for tax
purposes.
In 2006, the Group acquired ownership interests or increased its existing ownership interests in the
following three entities for total consideration of EUR 366 million, of which EUR 347 million was in
cash, EUR 5 million in directly attributable costs and EUR 14 million in deferred cash consideration:
)Nokia Telecommunications Ltd, based in BDA, Beijing, a leading mobile communications
manufacturer in China. The Group acquired an additional 22% ownership interest in Nokia
Telecommunications Ltd. on June 30, 2006.
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