Citrix 2014 Annual Report Download - page 84

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-16
2014 Other Acquisitions
During the second quarter of 2014, the Company acquired all of the issued and outstanding securities of a privately-held
company. This business became part of the Company's Enterprise and Service Provider division. The total cash consideration
for this transaction was approximately $17.2 million, net of $0.8 million of cash acquired. Transaction costs associated with the
acquisition were approximately $0.1 million, all of which the Company expensed during the year ended December 31, 2014
and are included in General and administrative expense in the accompanying consolidated statements of income.
In the fourth quarter of 2014 the Company acquired all of the issued and outstanding securities of two privately-held
companies for total cash consideration of approximately $19.9 million, net of $0.2 million of cash acquired. The businesses
became part of the Company's Enterprise and Service Provider division. In addition, in connection with one of the acquisitions,
the Company assumed non-vested stock units which were converted into the right to receive, in the aggregate, up to 23,430
shares of the Company's common stock, for which the vesting period began on the closing of the transaction. Transaction costs
associated with the acquisitions were not significant.
Purchase Accounting for the Acquisitions in 2014
The purchase prices for the companies acquired during the year ended December 31, 2014, which include Framehawk,
RightSignature and the 2014 Other Acquisitions (collectively, the "2014 Acquisitions"), were allocated to the respective
acquired company's net tangible and intangible assets based on their estimated fair values as of the date of the acquisition. The
allocations of the total purchase prices are summarized below (in thousands):
Framehawk RightSignature 2014 Other Acquisitions
Purchase
Price
Allocation Asset Life
Purchase
Price
Allocation Asset Life
Purchase
Price
Allocation Asset Life
Current assets $ 569 $ 1,305 $ 1,423
Other assets — — 21
Property and equipment 36 Various — 48 Various
Deferred tax assets, non-current 2,963 — 3,128
Intangible assets 14,000 7.0 years 27,765 3-10 years 19,200 Various
Goodwill 11,917 Indefinite 10,694 Indefinite 18,344 Indefinite
Assets acquired 29,485 39,764 42,164
Current liabilities assumed (748) (826)(2,351)
Long-term liabilities assumed (3,766) (5)—
Deferred tax liabilities, non-current (564) — (1,667)
Net assets acquired $ 24,407 $ 38,933 $ 38,146
Current assets acquired in connection with the 2014 Acquisitions consisted primarily of cash, accounts receivable and
other short-term assets. Current liabilities assumed in connection with the 2014 Acquisitions consisted primarily of short-term
payables and other accrued expenses. Long-term liabilities assumed in connection with the 2014 Acquisitions consisted of
long-term debt, which was paid in full subsequent to the respective acquisition date.
Goodwill from the 2014 Acquisitions was assigned to the Enterprise and Service Provider and Mobility Apps division
segments. The goodwill related to the 2014 Acquisitions is not deductible for tax purposes. See Note 11 for segment
information. The goodwill amounts are comprised primarily of expected synergies from combining operations and other
intangible assets that do not qualify for separate recognition.
Revenues from the 2014 Acquisitions are included in the revenues of each business's respective segment. The Company
has included the effect of the 2014 Acquisitions in its results of operations prospectively from the date of acquisition. The effect
of the 2014 Acquisitions was not material to the Company's consolidated results for the periods presented, accordingly,
proforma financial disclosures have not been presented.