Cisco 2015 Annual Report Download - page 94

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The total purchase consideration related to the Company’s business combinations completed during fiscal 2014 consisted of cash
consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these business
combinations was approximately $134 million.
Allocation of the purchase consideration for business combinations completed in fiscal 2013 is summarized as follows (in
millions):
Fiscal 2013
Purchase
Consideration
Net Liabilities
Assumed
Purchased
Intangible
Assets Goodwill
NDS ..................................................... $ 5,005 $ (185) $ 1,746 $ 3,444
Meraki ................................................... 974 (59) 289 744
Intucell .................................................. 360 (23) 106 277
Ubiquisys ................................................ 280 (30) 123 187
All others (nine in total) .................................. 363 (25) 127 261
Total acquisitions ...................................... $ 6,982 $ (322) $ 2,391 $ 4,913
The Company completed its acquisition of NDS Group Limited (“NDS”) in the first quarter of fiscal 2013. Prior to its acquisition,
NDS was a provider of video software and content security solutions that enable service providers and media companies to
securely deliver and monetize new video entertainment experiences. With the acquisition of NDS, the Company enhances its
comprehensive content delivery platform that enables service providers and media companies to deliver next-generation
entertainment experiences. The Company has included revenue from the NDS acquisition, subsequent to the acquisition date, in
its Service Provider Video product category.
The Company acquired privately held Meraki, Inc. (“Meraki”) in the second quarter of fiscal 2013. Prior to its acquisition,
Meraki offered mid-market customers on-premise networking solutions centrally managed from the cloud. With its acquisition of
Meraki, the Company addresses the shift to cloud networking as a key part of the Company’s overall strategy to accelerate the
adoption of software-based business models that provide new consumption options for customers and revenue opportunities for
partners. The Company has included revenue from the Meraki acquisition, subsequent to the acquisition date, in its Wireless
product category.
The Company acquired privately held Intucell, Ltd. (“Intucell”) in the third quarter of fiscal 2013. Prior to its acquisition, Intucell
provided advanced self-optimizing network software for mobile carriers. With its acquisition of Intucell, the Company enhances
its commitment to global service providers by adding a critical network intelligence layer to manage and optimize spectrum,
coverage, and capacity, and ultimately the quality of the mobile experience. The Company has included revenue from the Intucell
acquisition, subsequent to the acquisition date, in its NGN Routing product category.
The Company acquired privately held Ubiquisys Limited (“Ubiquisys”) in the fourth quarter of fiscal 2013. Prior to its
acquisition, Ubiquisys offered service providers intelligent 3G and long-term evolution (LTE) small-cell technologies for
seamless connectivity across mobile networks. With its acquisition of Ubiquisys, the Company strengthens its commitment to
global service providers by enabling a comprehensive small-cell solution that supports the transition to next-generation radio
access networks. The Company has included revenue from the Ubiquisys acquisition, subsequent to the acquisition date, in its
NGN Routing product category.
The total purchase consideration related to the Company’s business combinations completed during fiscal 2013 consisted of cash
consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these business
combinations was approximately $156 million.
(b) Pending Acquisitions and Divestitures
Acquisition of OpenDNS On August 26, 2015, the Company completed its acquisition of privately held OpenDNS, Inc.
(“OpenDNS”). Under the terms of the agreement, the Company paid approximately $635 million in cash and share-based awards
assumed to acquire OpenDNS. OpenDNS provides advanced threat protection for endpoint devices. With the OpenDNS
acquisition, the Company aims to strengthen its security offerings by adding broad visibility and threat intelligence delivered
through a software-as-a-service platform. Revenue from the OpenDNS acquisition will be included in the Company’s Security
product category. The Company expects that most of the purchase price will be allocated to goodwill and purchased intangible
assets.
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