This from 2007 annual report:
In fiscal 2007 we paid the former shareholders of ValuSoft additional consideration of $1.8 million for
reaching certain pre-tax income targets pursuant to the purchase agreement. In 2002, we acquired
ValuSoft, Inc. for a total cost of $14.2 million, which was paid primarily in cash. In addition, we have since
paid the former shareholders of ValuSoft additional consideration in the amount of $9.2 million because
ValuSoft reached certain pre-tax income targets in the four years subsequent to the acquisition. They are
still eligible for additional consideration of up to $1.8 million, which may be paid by us in cash or stock, if
they reach certain pre-tax income targets in the last annual period ending on June 30, 2007. Any additional
consideration determined to be payable will increase goodwill in the period such pre-tax income targets are
reached. Goodwill recognized in the original transaction and in the payments of the additional
consideration has amounted to $21.2 million and is expected to be deductible for income tax purposes.
they did not release financial details because they sold it at
a loss. this is what management does.
Don't you think they should have sold UDraw?
why shutter a unit that produced revenue?
even if they shuttered and sold for $1 they are up.
Turbo, thank you for finding this information.
Yes, you are smart for finding the purchase price as a basis for a GUESSTIMATE selling price.
THq is notorious for selling at 1/2 of what they paid for something. :(
Therefore, I wouldn't expect anything more than $5 to $10 million as a sales price.
Probably closer to $5 million.
I hope I am wrong.
Eh. Don't let today's market movement get you down. We had the same kind of movement the day after THQ pre-announced thier numbers. If it follows the same pattern, Thursday and Friday should show us gains.