Google Inc. paid $966 million in cash for traffic report app company Waze Ltd., according to its financial report for the second quarter of 2013. The amount is less than the $1.1-1.3 billion reported in the media for the acquisition.
“Of the total purchase price, $847 million was attributed to goodwill and $188 million was attributed to intangible assets. This was offset by $69 million of other net liabilities assumed,” added Google. The acquisition was completed in June.
“The acquisition is expected to enhance our customer’s user experience by offering real time traffic information to users’ daily navigation needs. The fair value of assets acquired and liabilities assumed was based on a preliminary valuation and our estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price that are not yet finalized are related to the fair values of intangible assets acquired, certain income taxes and residual goodwill. The goodwill of $847 million is primarily attributable to the synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes.”
Google paid three times more for Waze than it paid for 15 other acquisitions in the first half of the year. Google paid $344 million, for 15 acquisitions and purchases of intangible assets, including $201 million for intangible assets, $148 million for goodwill, and $5 million for net liabilities assumed. “These acquisitions generally enhance the breadth and depth of our expertise in engineering and other functional areas, our technologies, and our product offerings. The amount of goodwill expected to be deductible for tax purposes is approximately $32 million,” it added.
Read more at Globes.