An update on Infomedia18s acquisition of local listings and reviews business Burrp earlier this year, on March 25th 2009: according to a filing with the Securities & Exchange Board of India (SEBI), Infomedia18 had paid a total amount of Rs. 4.255 crores for acquiring Burrp. Previously, the amount paid was undisclosed. According to a TV18 filing, the consideration was allocated on the following basis:
Thanks to Deepak Shenoy for bringing this to our notice. Relevant extracts from filings:
From Infomedia18 Filings:
Extract 1: Business Transfer Agreement between our Company and burrp! Software Private Limited Our Company has entered into a business transfer agreement with burrp! Software Private Limited on March 25, 2009. Pursuant to the business transfer agreement, our Company has acquired the business of burrp! (which includes the contracts, employees, books and records, business assets, business properties, work in progress, current liabilities, current assets, business goodwill and intangible property rights) as a going concern. The sale was deemed effective as of March 15, 2009. Terms : Under the terms of the business transfer agreement, the parties have agreed that burrp! shall indemnify our Company for any losses, liabilities or damages incurred by our Company with respect to the burrp! business which related to the period prior to March 15, 2009. Our Company shall be responsible for all liabilities relating to the burrp! Business that arise after March 15, 2009.
Consideration: Our Company has paid Rs. 425.50 lakhs as consideration for the acquisition of burrp!
Extract 2: Significant developments after December 31, 2008 In March, 2009 our Company entered into a business transfer agreement with burrp!, pursuant to which our Company has agreed to acquire the burrp! for a total consideration of Rs. 425.50 lakhs. Further, our Company on March 27, 2009 has also availed a loan from one of its promoters, TV18, for an amount of Rs. 4,050 lakhs carrying an interest of 14% per annum, repayable on or before December 31, 2009.
From TV18 Filing: The Company has entered into a Business transfer Agreement with Burrp! Software Private Limited (“Burrp”) for acquiring the specified Business of Burrp as a going concern on a slump sale basis for a lump sum consideration of Rs. 42,550,000 from March 15, 2009.The said consideration has been allocated by the company on an estimated basis as under.