Siemens 2007 Annual Report Download - page 226

226 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
4 Acquisitions, dispositions and discontinued operations
a) Acquisitions
During the years ended September 30, 2007 and 2006, the Company completed a
number of acquisitions. These acquisitions have been accounted for under the
purchase method and have been included in the Company’s Consolidated Finan-
cial Statements since the date of acquisition.
On July 25, 2007, Siemens signed an agreement with Dade Behring Holdings,
Inc. (Dade Behring), USA, to acquire all issued and outstanding shares of common
stock of Dade Behring by submitting a cash tender offer of U.S.$77 per share. Dade
Behring is a leading manufacturer and distributor of diagnostic products and ser-
vices to clinical laboratories. The aggregate consideration, including the assump-
tion of debt, amounts to approximately U.S.$7 billion (approximately €5 billion).
The transaction closed at the beginning of November 2007 (see also Note 42, Sub-
sequent events).
aa) Acquisitions in fi scal 2007
On January 2, 2007, Siemens completed the acquisition of the diagnostics division
of Bayer Aktiengesellschaft (Bayer). The acquisition, which was consolidated as of
January 2007, will be integrated into Med together with Diagnostic Products Cor-
poration, USA (DPC), which was acquired in fi scal 2006. The Bayer diagnostics
division will enable Siemens to expand its position in the growing molecular diag-
nostics market. The estimated purchase price, payable in cash, amounts to €4.5
billion (including €185 cash acquired). The Company has not yet fi nalized the
purchase price allocation. Based on the preliminary purchase price allocation,
approximately €761 was allocated to intangible assets subject to amortization,
and approximately €2,738 was reported as goodwill. Of the €761 intangible assets,
€574 relate to customer relationships and €139 to trademarks and tradenames.
On May 4, 2007, Siemens completed the acquisition of U.S.-based UGS Corp.
(UGS), one of the leading providers of product lifecycle management (PLM) soft-
ware and services for manufacturers. UGS, which was consolidated as of May 2007,
will be integrated into A&D. The acquisition will enable Siemens to provide an
end-to-end software and hardware portfolio for manufacturers encompassing the
complete lifecycle of products and production facilities. The estimated purchase
price, including the assumption of debt, amounts to €2.7 billion (including €75
cash acquired). The company has not yet fi nalized the purchase price allocation.
Based on the preliminary purchase price allocation, approximately €1,066 was
allocated to intangible assets subject to amortization and approximately €1,880
was recorded as goodwill.