Quarterly report pursuant to Section 13 or 15(d)

Business Combinations

Business Combinations
3 Months Ended
Aug. 31, 2023
Business Combinations [Abstract]  
Business Combinations

Note D: Business Combinations


Effective July 31, 2023, substantially all of the net assets of Alterna Capital Solutions LLC (“Alterna”), were acquired by a wholly owned subsidiary of the Company. Alterna purchases outstanding accounts receivable of their customers under non-recourse arrangements. This acquisition allows the Company to increase and diversify its portfolio of solutions and support serving small- to medium-sized businesses. The acquisition consideration was comprised of a base purchase price of $94.8 million plus immediate settlement of debt totaling $128.9 million, net of $15.7 million in cash and restricted cash acquired. Accounts receivable balances acquired, net of allowance for doubtful accounts, and less amounts due to clients related to funding arrangements, totaled $160.3 million. Management’s best estimates at the time of acquisition for intangible assets related to the client list were $18.9 million that will be amortized utilizing an accelerated method of amortization over a weighted average of 8 years. Goodwill in the amount of $46.5 million was recorded as a result of the acquisition, which is tax-deductible. The Company's purchase price allocation for the acquisition of Alterna is preliminary and subject to revision as additional information about fair value of assets and liabilities acquired becomes available. The financial results of Alterna are included in the Company’s consolidated financial statements from its respective date of acquisition. This acquisition was not material to the Company’s results of operations, financial position, or cash flows.