Notes to the Consolidated Financial Statements  Cardno Limited and its Controlled Entities for the year ended 30 June 2010 34. BUSINESS COMBINATIONS CONTINUED  Details of acquisitions  Contingent consideration  (c) On 10 June 2010 the Group acquired 100% of Environmental Resolutions, Inc, an environmental soil and  groundwater remediation firm primarily focussed on the petro-chemical market in the US. The effective date was  1 June 2010.  * The acquisition of ERI was completed on 10 June 2010. Accordingly, the accounting for this acquisition has been  completed on a provisional basis. Further analysis will be performed to determine the existence and fair value of any  identifiable intangible assets acquired as part of the acquisition. For the period 1 January 2010 – 30 June 2010, the acquired business contributed revenues of $1,456,831 and net profit  after tax of $425,548.  If the acquisition had occurred on 1 July 2009 revenue and NPAT for the Group would have been $517,633,465 and  $42,052,758 respectively.  At the time of purchase the vendors of Environmental Resolutions Inc. subscribed for shares in Cardno Limited to the  value of $6,784,390. The fair value of the ordinary shares issued based on the 10 day VWAP of Cardno Limited shares.  The fair value price was $3.71 for the purchase of shares by vendors of Environmental Resolutions Inc issued 10 June  2010. Cardno Limited has agreed to pay the selling shareholders of Environmental Resolutions, Inc additional consideration of  USD8,089,000 if the acquiree’s normalised EBITDA over the period 1 June 2010 to 31 May 2011 exceeds  USD6,371,000. This amount has been included in the purchase consideration based on estimates of the acquiree’s  financial performance over the earn-out period.  The goodwill is attributable to the skills and technical talent of the employee’s of Environmental Resolutions Inc, the  synergies expected to be achieved from integrating the Company into the Group’s existing operations.  $’000 Purchase Consideration  Cash 26,610  Vendor liability (including contingent consideration)  11,404  Total purchase consideration  38,014  Fair value of net identifiable assets acquired*  3,624  Goodwill* 34,390  Page 65 of 80 