Accounts and notes Note 29 - Acquisition of subsidiaries

Purchase price
Cybercom Syd AB acquired 100% of Varchar AB's share capital on 2 January 2007. Varchar is an IT consultancy that has about 25 employees and specialises in .NET technology. The fixed purchase price was SEK 12,500 thousand, which was entirely paid in cash. An additional performance-based purchase price of SEK 4,689 thousand was paid.
Goodwill of SEK 15,943 thousand arose in conjunction with the acquisition and was attributable to the greater depth of expertise and expanded customer base that Varchar contributed to Cybercom.
The total value of the acquired assets and liabilities, purchase price, and effect on the Group’s cash and cash equivalents concerning Varchar was:
Cash payment				12,500
Expenses directly linked to the acquisition				443
Additional purchase price				4,689
Total purchase price				17,632
Fair value for acquired net assets				-1,689
Goodwill				15,943
Acquired net assets			Carrying amount	Fair value
Property, plant, and equipment			215	215
Other current assets			4,634	4,634
Deferred tax liability			-141	-141
Current liabilities			-3,019	-3,019
Acquired net assets			1,689	1,689
Investing activities
Cash settled purchase price				17,632
Cash and cash equivalents in acquired subsidiary				-685
Effect on Group cash and cash equivalents from acquisition				16,947
Cybercom acquired auSystems in Sweden, Poland, and Denmark, with about 700 employees, on 20 April 2007. The fixed purchase price was SEK 730,000 thousand, paid entirely in cash. An additional purchase price of SEK 23,373 thousand was entered as a liability. The additional purchase price comprises 50% of the tax effect of amortising goodwill from net assets acquisition regarding one of the acquired companies.
Goodwill of SEK 470.0 million arose in conjunction with the acquisition and was attributable to the greater depth of expertise and geographic coverage that auSystems contributed to Cybercom. Also, SEK 56.1 million of the purchase price was allocated to customer relationships.
The total value of the acquired assets and liabilities, purchase price, and effect on the Group’s cash and cash equivalents concerning auSystems was:
Purchase price
Cash payment				730,000
Payment of subsidiaries' loan to Teleca				-172,847
Expenses directly linked to the acquisition				14,045
Additional purchase price				23,373
Total purchase price				594,571
Fair value for acquired net assets				-124,543
Goodwill				470,028
Acquired net assets			Carrying amount	Fair value
Goodwill from net assets acquisition			168,531	141,921
Customer relationships			-	56,060
Other intangible non-current assets			386	386
Property, plant, and equipment			14,297	14,297
Financial assets			551	551
Deferred tax asset			168	68,732
Other current assets			281,555	281,555
Deferred tax liability			-1,395	-17,092
Current liabilities			-416,126	-421,867
Acquired net assets			47,967	124,543
Investing activities
Cash settled purchase price				571,198
Cash and cash equivalents in acquired subsidiary				4,685
Effect on Group cash and cash equivalents from acquisition				575,883
The next table shows sales, the year's profit, and earnings per share for 2007 as if the Varchar and auSystems acquisitions had taken place on 1 January 2007.
	auSystems	Varchar	Cybercom	Total
Sales	294,717	-	1,164,974	1,459,691
Year's profit	28,694	-	67,032	95,726
Earnings per share, SEK	1.91	-	4.46	6.37
Acquired companies' contribution to Group sales and profit in 2007:
	auSystems	Varchar
Sales	542,238	23,825
Year's profit	25,083	4,026
The profit for auSystems includes a negative SEK 3,737 thousand for amortisation of customer relationships and interest expense of SEK 5,569 thousand.
An additional purchase price of SEK 760 thousand was paid in 2006 for acquisition of Netcom Consultants AB. For more information on this acquisition, see the 2005 and 2006 annual reports.
Purchase price			2007	2006
Additional purchase price			-	760
Total purchase price			-	760
Fair value for acquired net assets			-	-
Goodwill			-	760
Investing activities			2007	2006
Cash settled purchase price			-	760
Cash and cash equivalents in acquired subsidiary			-	-
Effect on Group cash and cash equivalents from acquisition			-	760

Note 1-16 Note 17-33