COMBINED FINANCIAL STATEMENTS > NOTES TO THE COMBINED FINANCIAL STATEMENTS Acquisitions 12 During the year a number of acquisitions were made for a total consideration amounting to £226m/ € 328m, including £3m/ € 5m deferred to future years, and after taking account of net cash acquired of £9m/ € 13m. The most significant acquisitions were the Holtzbrinck STM business in Germany, and, in the US, Applied Discovery Inc and the public records business of Dolan Media Company. The net assets of the businesses acquired are incorporated at their fair value to the combined businesses. The fair values of the consideration given and the assets and liabilities acquired are summarised below: Book value Fair value Fair on acquisition adjustments value £m £m £m Goodwill – 93 93 Intangible fixed assets 28 108 136 Tangible fixed assets 4 (1) 3 Current assets 44 – 44 Current liabilities (42) 1 (41) Borrowings (9) – (9) Net assets acquired 25 201 226 Consideration (after taking account of £9m net cash acquired) 226 Less: deferred to future years (3) Net cash flow 223 Book value Fair value Fair on acquisition adjustments value € m € m € m Goodwill – 135 135 Intangible fixed assets 41 156 197 Tangible fixed assets 6 (2) 4 Current assets 64 – 64 Current liabilities (62) 3 (59) Borrowings (13) – (13) Net assets acquired 36 292 328 Consideration (after taking account of  € 13m net cash acquired) 328 Less: deferred to future years (5) Net cash flow 323 The fair value adjustments in relation to the acquisitions made in 2003 relate principally to the valuation of intangible assets to conform with Reed Elsevier accounting policies. Goodwill represents the excess of the consideration over the net tangible and intangible assets acquired. The businesses acquired in 2003 contributed £80m/ € 116m to turnover, £16m/ € 25m to adjusted operating profit, before the amortisation of goodwill and intangible assets and exceptional items, and £15m/ € 22m to net cash inflow from operating activities for the part year under Reed Elsevier ownership. 58 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003