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Business Combinations
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12 Months Ended | ||||
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May 31, 2011
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| Business Combinations [Abstract] | |||||
| Business Combinations |
During fiscal 2011, the Company acquired two
software-as-a-service companies, opening up additional areas of
the markets the Company serves. Effective February 8, 2011,
the Company acquired SurePayroll, Inc.
(“SurePayroll”), a payroll processing provider for
small businesses, for $114.9 million, net of cash acquired.
The acquisition of SurePayroll allows the Company entry into a
new area of the online market for small businesses, and resulted
in approximately $84.6 million of goodwill, which is not
tax-deductible.
Effective May 3, 2011, the Company acquired ePlan Services,
Inc. (“ePlan”), a provider of recordkeeping and
administrative solutions to the defined contribution
marketplace, for $15.2 million, net of cash acquired. The
ePlan acquisition resulted in $7.5 million of goodwill,
which is not tax-deductible.
Upon their respective closing dates, both entities acquired
became wholly owned subsidiaries of the Company. The financial
results of SurePayroll and ePlan are included in the
Company’s consolidated financial statements from their
respective dates of acquisition. These acquisitions are not
material to the Company’s results of operations, financial
position, or cash flows.
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