Siemens 2011 Annual Report Download - page 276

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance
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aa) Acquisitions in fiscal 
At the beginning of July , Siemens acquired a controlling
interest of % in Siteco Lighting GmbH (Siteco) in a share
deal transaction. Siteco is a leading European lighting compa-
ny that supplies luminaires and lighting systems for urban in-
frastructures such as public and commercial buildings,
streets, tunnels, airports and sports stadiums. The rationale
for the acquisition was to enhance Siemens’ activities in the
lighting market benefitting from strong relationships with key
decision makers of wholesalers and architects. The aggregate
consideration amounts to € million (including € million
cash acquired), which consists of € million paid in cash
and € million recorded within Other liabilities. In the course
of the acquisition, Siemens AG assumed an external bank lia-
bility of Siteco of € million. Siteco will be integrated into
OSRAM, which is presented in discontinued operations. The
following figures represent the final purchase price allocation
and show the amounts recognized as of the acquisition date
for each major class of assets acquired and liabilities as-
sumed: Intangible assets € million, Property, plant and
equipment € million, Inventories € million, Receivables
€ million, Deferred income taxes €() million and Pension
provisions €() million. Intangible assets mainly relate to
customer relationships of € million with useful lives from
two to ten years, technology of € million with useful lives of
three to  years and to the Siteco corporate brand of € mil-
lion, which was considered to be of indefinite useful life.
Goodwill of € million comprises intangible assets that are
not separable such as employee know-how and expected syn-
ergy effects. The acquired Siteco business contributed reve-
nues of € million and a net loss of €() million in discontin-
ued operations (including effects from purchase accounting
and integration costs) to Siemens for the period from acquisi-
tion to September , . If Siteco had been included as of
October , , the impact on consolidated revenues and
consolidated net income in discontinued operations for the
 months ended September ,  would have been €
million and €() million, respectively.
In January , Siemens made a binding offer to purchase ad-
ditional shares in order to increase its stake in its publicly list-
ed Indian subsidiary Siemens Ltd. from about % to a maxi-
mum of %. The Company offered the shareholders of
Siemens Ltd. to purchase their shares for a price of INR 
million per share (written put). The offer period began on
March ,  and ended on April , . The offer was ac-
cepted in full until that date and the transaction was complet-
ed at the end of April . At the date of public announce-
ment, the purchase was accounted for as acquisition of non-
controlling interests qualifying as a transaction between
shareholders, as present ownership was transferred. As a re-
sult, line items Retained earnings and Non-controlling inter-
ests decreased by € million and € million, respectively.
Transaction costs, net of tax, were deducted from equity. Line
item Other comprehensive income was proportionally reallo-
cated between line items Non-controlling interests and Total
equity attributable to shareholders of Siemens AG.
In fiscal , Siemens additionally acquired various entities,
which were not material, either individually or in aggregate.
ab) Acquisitions in fiscal 
At the beginning of November , Siemens completed the
acquisition of % of Solel Solar Systems Ltd., (Solel), a solar
thermal power technology company. The rationale for the ac-
quisition was to expand the product portfolio of Siemens in
the field of concentrated solar power (CSP) to become a lead-
ing CSP product and solution provider. Solel, which was con-
solidated as of November , has been integrated into
Energy Sector’s Renewable Division. The aggregate consider-
ation amounts to € million (including € million cash ac-
quired). The purchase price allocation was completed during
the quarter ended December ,  and resulted in a Good-
will of € million. The amounts recognized based on the fair
value measurement of assets acquired and liabilities assumed
resulted in € million intangible assets, which were allocat-
ed as follows: € million was allocated to patented and un-
patented technology with weighted average useful life of .
years, € million to order backlog with weighted average
useful life of one year and € million to in-process research
and development and trademarks with weighted average use-
ful life of  years. The acquired Solel business contributed rev-
enues of € million and a net loss of € million (including
purchase price accounting effects and integration costs) to
the group for the period from acquisition to September ,
. In addition, a goodwill impairment loss amounting to
€ million has been recorded in fiscal . For further
details on the goodwill impairment see
Note 16 Goodwill. If
the acquisition had occurred on October , , impact on
consolidated revenues and consolidated loss for the  months
ended September ,  would have been € million and
€ million, respectively.
In fiscal , Siemens additionally acquired various entities,
which were not material, either individually or in aggregate.