Quarterly report pursuant to Section 13 or 15(d)

Acquisition of Citizen Engagement Centers Business (Tables)

v3.19.2
Acquisition of Citizen Engagement Centers Business (Tables)
 9 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed Our current estimate of the allocation of the purchase price, updated from March 31, 2019, is shown below.
(dollars in thousands) Estimated purchase price allocation at March 31, 2019 Adjustments Estimated purchase price allocation at June 30, 2019
Cash consideration $ 430,573  $ 126  $ 430,699 
Billed and unbilled receivables 141,869  296  142,165 
Property and equipment 6,454  2,520  8,974 
Other assets 4,093  415  4,508 
Intangible assets 122,300  —  122,300 
Total identifiable assets acquired 274,716  3,231  277,947 
Accounts payable and other liabilities 32,205  (343) 31,862 
Net identifiable assets acquired 242,511  3,574  246,085 
Goodwill 188,062  (3,448) 184,614 
Net assets acquired $ 430,573  $ 126  $ 430,699 
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination
(dollars in thousands) Useful life Fair value
Customer relationships - all contracts except U.S. Census 10 years $ 85,300 
Customer relationships - U.S. Census 2 years 37,000 
Total intangible assets $ 122,300 
Schedule of the contribution of acquired business
The contribution of the acquired business for the three and nine months ended June 30, 2019, is shown below. Given the integration of the acquired business into our cost structure, it is impracticable to calculate the effect of the acquisition on operating income.


Acquisition Contribution for
(dollars in thousands) Three Months Ended
June 30, 2019		 Nine Months Ended
June 30, 2019
Revenue $ 163,381  $ 440,647 
Gross profit 31,943  83,563 
Schedule of Business Acquisition, Pro Forma Information
  Pro forma results for the three months ended June 30, Pro forma results for the nine months ended June 30,
(dollars in thousands, except per share amounts) 2019  2018  2019  2018 
Revenue $ 730,710  $ 731,755  $ 2,230,278  $ 2,324,478 
Net income 62,965  56,886  183,927  176,877 
Basic earnings per share attributable to MAXIMUS 0.98  0.86  2.85  2.68 
Diluted earnings per share attributed to MAXIMUS 0.97  0.86  2.84  2.66 
Schedule of Goodwill
Changes in goodwill for the nine months ended June 30, 2019, were as follows:
(dollars in thousands) U.S. Health & Human Services U.S. Federal Services Outside the United States Total
Balance as of September 30, 2018 $ 139,588  $ 228,148  $ 32,146  $ 399,882 
Estimated effect of the acquisition of citizen engagement centers business 19,703  162,465  2,446  184,614 
Foreign currency translation —  —  (793) (793)
Balance as of June 30, 2019 $ 159,291  $ 390,613  $ 33,799  $ 583,703 
Schedule of Finite-Lived Intangible Assets
The following table sets forth the components of intangible assets:
  As of June 30, 2019 As of September 30, 2018
(dollars in thousands) Cost Accumulated
Amortization		 Intangible
Assets, net		 Cost Accumulated
Amortization		 Intangible
Assets, net
Customer contracts and relationships $ 248,324  $ 63,684  $ 184,640  $ 129,113  $ 42,683  $ 86,430 
Technology based intangible assets 5,680  4,385  1,295  5,750  4,212  1,538 
Trademarks and trade names 4,489  4,459  30  4,496  4,429  67 
Total $ 258,493  $ 72,528  $ 185,965  $ 139,359  $ 51,324  $ 88,035 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense The estimated future amortization expense for the remainder of the current fiscal year and the future fiscal years for the intangible assets held by the Company as of June 30, 2019, is as follows (in thousands):
Nine months ended September 30, 2019 $ 8,984 
2020  35,279 
2021  18,230 
2022  15,857 
2023  15,760