Company: UP
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001819516-25-000012
Chunk: 169

Company: Wheels Up Experience Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 169
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Air Partner plc AcquisitionOn April 1, 2022, we acquired all of the outstanding equity of Air Partner plc (n/k/a Air Partner Limited) for a total purchase price of $108.2 million in cash. Air Partner is a United Kingdom-based international aviation services group that upon acquisition provided us with operations in 18 locations across four continents. Acquisition-related costs for Air Partner of $2.9 million were included in General and administrative expense in the consolidated 

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statements of operations for the year ended December 31, 2022. The acquisition of Air Partner was determined to be a business combination.As of the date of acquisition, the total purchase price allocated to the Air Partner assets acquired and liabilities assumed according to their estimated fair values were as follows (in thousands):Current assets$49,617 Property and equipment, net2,012 Operating lease right-of-use assets2,780 Goodwill83,910 Intangible assets20,921 Restricted cash27,507 Other assets1,686 Total assets acquired188,433 Total liabilities assumed(80,239)Net assets acquired$108,194 Current assets of Air Partner included $18.0 million of cash and $16.6 million of accounts receivable.The allocated value of goodwill primarily relates to anticipated synergies and economies of scale by combining the use of Air Partner’s existing business processes with our platform to expand on an international basis. The acquired goodwill is not deductible for tax purposes.The amounts allocated to acquired intangible assets and their associated weighted-average amortization periods, which were determined based on the period the assets are expected to contribute directly or indirectly to our cash flows, consist of the following:Amount (In thousands)Weighted-Average Amortization Period (Years)Customer relationships$16,521 5.7Backlog1,458 1.5Trade name1,931 1.9Developed technology1,011 5.8Total acquired intangible assets$20,921 5.1The intangible asset fair value measurements are primarily based on significant inputs that are not observable in the market which represent a Level 3 measurement. The valuation method used for the Air Partner intangible assets was the income approach.The results of Air Partner were included in the consolidated statement of operations from the date of acquisition. Revenue for Air Partner was $87.6 million, net of intercompany eliminations, and income from operations was $8.3 million from the date of acquisition through December 31, 202