29. Acquisitions and disposals

29. ACQUISITIONS
 
Tieto completed the following acquisition during 2016:
   
* Emric Partners AB, ownership 100% of the shares, acquisition date 31 August 2016
   
Emric is the Nordic market leader in software and services for credit processing. The transaction supports the company’s financial services business expansion in the Nordic countries and internationally. Furthermore, it accelerates Tieto’s Banking as a Service offering through new competencies and software products within loan origination, lending and leasing.
   
The following table summarizes the consideration paid, the fair value of assets acquired and liabilities assumed at the acquisition date.
   
Consideration
 
EUR million
Paid in cash 31.7
Escrow amount 0.5
Contingent consideration 5.4
Total consideration 37.7
 
 
Recognized amounts of identifiable assets acquired and liabilities assumed
 
EUR million Recognized on acquisition
Property, plant and equipment 0.4
Intangible assets 14.5
Deferred tax assets 0.8
Trade and other receivables 2.8
Cash and cash equivalents 1.5
Deferred tax liabilities -3.3
Trade and other payables -5.2
Goodwill 26.2
Total 37.7
   
 
Contingent consideration is mainly determined by growth of the acquired business during years 2017 and 2018.
   
The identified intangible assets relate to technology and customer relationships.
   
The goodwill is attributable to market share and new competencies. It will not be deductible for tax purposes.
   
Acquisition-related costs of EUR 0.3 million are included in other expenses in the income statement and in cash flow from operations.
   
Since the date of acquisition, the acquired unit has contributed about EUR 6.6 million to the revenue and EUR -1.0 million to the operating profit of the Group.
 
If the combinations had taken place at the beginning of the year, the revenue for the Group would have been about EUR 19 million and profit about EUR -1.4 million.
   
Change in contingent consideration from acquisitions completed in 2015
   
Contingent consideration related to 2015 acquisitions and respective contingent liability decreased by EUR 2.6 million.
   
   
EUR million
Contingent consideration recognized in 2015 5.7
Change recognized in 2016 -2.6
Remaining contingent consideration 3.0