eBay 2000 Annual Report Download - page 70

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
857,088 shares of eBay's common stock with an estimated fair value of approximately $2.0 million and other
acquisition related expenses of approximately $335,000, consisting primarily of payments for non-compete
agreements totaling approximately $208,000 and legal and other professional fees. Of the total purchase price,
approximately $150,000 was allocated to in-process technology and was immediately charged to operations
because such in-process technology had not reached the stage of technological feasibility at the acquisition
date and had no alternative future use. The remainder of the purchase price was allocated to net tangible
liabilities assumed ($31,000) and intangible assets, including completed technology ($500,000), customer list
($1.5 million), covenants not to compete ($208,000) and goodwill ($24,000). The intangible assets are being
amortized over their estimated useful lives of 8 to 24 months.
Kruse International
On May 18, 1999, eBay acquired Kruse, Inc. (d/b/a Kruse International) and all aÇliated entities under
common control including: Auburn Cordage, Inc., ACD Auto Sales, Inc., Reppert School of Auctioneering,
Inc. and Classic Advertising & Promotions, Inc., each an Indiana corporation, and Kruse Montana, Inc., a
Montana corporation (collectively, ""Kruse'' or the ""Kruse Companies'').
Kruse International was founded in 1971 and operated as a sole proprietorship until it was incorporated in
the state of Indiana in August 1986. The Kruse Companies conduct auctions, perform appraisal services and
auctioneer training for classic car auctions in various locations in the United States, England, Germany and
the Netherlands.
The aggregate consideration exchanged for the acquisition was 1,574,624 shares of eBay common stock
for all shares of capital stock of the Kruse Companies. The acquisition has been accounted for as a pooling of
interests.
Billpoint
On May 25, 1999, eBay acquired Billpoint, Inc. (""Billpoint''). Billpoint has developed a centralized,
turnkey authorization, billing and payment fulÑllment solution that permits individuals and small merchants to
accept credit cards as payment for Internet-based sales transactions. Billpoint's service is now being made
available to eBay's users, providing the ability to accept credit cards for payment.
In connection with the acquisition, eBay issued 1,048,264 shares of eBay common stock to the existing
Billpoint shareholders as consideration for all shares of capital stock, and all options and warrants to purchase
shares of common stock of Billpoint outstanding immediately prior to the consummation of the merger were
converted into options and warrants to purchase shares of eBay common stock. The acquisition has been
accounted for as a pooling of interests.
ButterÑelds
On May 28, 1999, eBay acquired ButterÑelds Auctioneers Corporation, a Delaware corporation and all
aÇliated entities under common control including ButterÑeld Credit Corporation Inc., 111 Potrero Partners,
LLC and HBJ Partners, LLC (collectively ""ButterÑelds'').
ButterÑelds was established in 1865, incorporated in California in July 1970 and reincorporated in the
state of Delaware in March 1999. ButterÑelds conducts auctions and performs appraisal services of Ñne art,
jewelry, antiques and other collectibles primarily in San Francisco, Los Angeles and Chicago.
ButterÑeld Credit Corporation Inc. (""BCCI'') is a wholly-owned subsidiary of ButterÑelds and is
incorporated in California. BCCI operates as a Ñnancing corporation whose sole purpose is serving
ButterÑeld's clients.
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