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3. Acquisitions and Divestitures
(a) Acquisition Summary
The Company completed six business combinations during fiscal 2015. A summary of the allocation of the total purchase
consideration is presented as follows (in millions):
Fiscal 2015
Purchase
Consideration
Net Liabilities
Assumed
Purchased
Intangible
Assets Goodwill
Metacloud ................................................. $ 149 $ (7) $ 29 $ 127
All others (five in total) ................................... 185 (13) 70 128
Total acquisitions ....................................... $ 334 $ (20) $ 99 $ 255
On September 29, 2014, the Company completed its acquisition of Metacloud, Inc. (“Metacloud”), a provider of private clouds
for global organizations. With its acquisition of Metacloud, the Company aims to advance its Intercloud strategy to deliver a
globally distributed, highly secure cloud platform. Revenue from the Metacloud acquisition has been included in the Company’s
Service category.
The total purchase consideration related to the Company’s business combinations completed during fiscal 2015 consisted of cash
consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these business
combinations was approximately $5 million.
Fiscal 2014 and 2013 Business Combinations
Allocation of the purchase consideration for business combinations completed in fiscal 2014 is summarized as follows (in
millions):
Fiscal 2014
Purchase
Consideration
Net Tangible
Assets Acquired
(Liabilities
Assumed)
Purchased
Intangible Assets Goodwill
Composite Software ....................................... $ 160 $ (10) $ 75 $ 95
Sourcefire .................................................. 2,449 81 577 1,791
WhipTail .................................................. 351 (34) 105 280
Tail-f ...................................................... 167 (7) 61 113
All others (four in total) .................................... 54 (5) 20 39
Total acquisitions ........................................ $ 3,181 $ 25 $ 838 $ 2,318
The Company acquired privately held Composite Software, Inc. (“Composite Software”) in the first quarter of fiscal 2014. Prior
to its acquisition, Composite Software provided data virtualization software and services that connect many types of data from
across the network and make it appear as if the data is in one place. With its acquisition of Composite Software, the Company
intends to extend its next-generation services platform by connecting data and infrastructure. The Company has included revenue
from the Composite Software acquisition, subsequent to the acquisition date, in the Company’s Service category.
The Company acquired Sourcefire, Inc. (“Sourcefire”) in the first quarter of fiscal 2014. Prior to its acquisition, Sourcefire
delivered innovative, highly automated security through continuous awareness, threat detection, and protection across its
portfolio, including next-generation intrusion prevention systems, next-generation firewalls, and advanced malware protection.
With its acquisition of Sourcefire, the Company aims to accelerate its security strategy of defending, discovering, and
remediating advanced threats to provide continuous security solutions to the Company’s customers in more places across the
network. The Company has included revenue from the Sourcefire acquisition in its Security product category.
The Company acquired privately held WhipTail Technologies, Inc. (“WhipTail”) in the second quarter of fiscal 2014. Prior to its
acquisition, WhipTail was a provider of high-performance, scalable solid state memory systems. In the fourth quarter of fiscal
2015, the Company announced the end-of-sale and end-of-life dates for the Cisco UCS Invicta Series in connection with the
decision to shut down the WhipTail unit.
The Company acquired privately held Tail-f Systems AB (“Tail-f”) in the fourth quarter of fiscal 2014. Prior to its acquisitions,
Tail-f was a provider of multi-vendor network service orchestration solutions for traditional and virtualized networks. With its
acquisition of Tail-f, the Company intends to advance its cloud virtualization strategy. The Company has included revenue from
the Tail-f acquisition in the Company’s cloud and virtualization offerings within the Other products.
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