10-K Watch: Valuing AllBusiness.com’s Acquisition By D&B


AllBusiness.com, the small business information and resource website, was acquired by Dun & Bradstreet (NYSE: DNB) late last year. Now in D&B’s 10-K annual report filed with SEC, some idea on how the company is valuing it:

“The transaction was valued at $58.1 million, inclusive of cash acquired of $1.8 million and transaction costs of $2.0 million…The acquisition was accounted for under the purchase method of accounting. As a result, the purchase price was allocated to acquired tangible assets and liabilities assumed on the basis of their respective fair values with the remaining purchase price recognized as goodwill and intangible assets of $41.2 million and $10.0 million, respectively. The goodwill was assigned to our U.S. reporting unit. Of the $10.0 million of acquired intangible assets, $7.1 million was assigned to advertiser relationships, $1.3 million was assigned to technology, $0.9 million was assigned to trade name, $0.4 million was assigned to proprietary content, $0.2 million was assigned to contracts and $0.1 million was assigned to non-compete agreements. These intangible assets, with useful lives from two to ten years, are being amortized over a weighted-average useful life of 6.2 years and are recorded as ‘Trademarks, Patents and Other’ within Other Non-Current Assets in our consolidated balance sheet since the date of acquisition. The impact the acquisition would have had on our results had the acquisition occurred at the beginning of 2007 is not material, and, as such, pro forma financial results have not been presented.”

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