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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-17
Identifiable intangible assets acquired in connection with the 2014 Acquisitions (in thousands) and the weighted-average
lives are as follows:
Framehawk Asset Life Right
Signature Asset Life 2014 Other
Acquisitions Asset Life
Core and product technologies $14,000 7.0 years $16,900 5.0 years $14,200 5.0 years
Trade names and trademarks — 2,465 10.0 years —
Customer relationships — 6,200 5.0 years —
Non-compete agreements — 2,200 3.0 years —
In-process R&D — — 5,000 Indefinite
Total $ 14,000 $ 27,765 $ 19,200
2013 Acquisitions
Zenprise
In January 2013, the Company acquired all of the issued and outstanding securities of Zenprise, Inc. ("Zenprise"), a
privately-held leader in mobile device management. Zenprise became part of the Company's Enterprise and Service Provider
division. Citrix has integrated the Zenprise offering for mobile device management into its XenMobile Enterprise edition. The
total consideration for this transaction was approximately $324.0 million, net of $2.9 million of cash acquired, and was paid in
cash. Transaction costs associated with the acquisition were approximately $0.6 million, of which the Company expensed
approximately $0.1 million during the year ended December 31, 2013 and are included in General and administrative expense
in the accompanying consolidated statements of income. In addition, in connection with the acquisition, the Company assumed
certain stock options, which are exercisable for up to 285,817 shares of the Company's common stock, for which the vesting
period reset fully upon the closing of the transaction.
2013 Other Acquisitions
During the third quarter of 2013, the Company acquired all of the issued and outstanding securities of a privately-held
company. The total consideration for this transaction was approximately $5.3 million, net of $2.8 million of cash acquired, and
was paid in cash. In addition, the Company agreed to pay contingent consideration of up to $3.0 million in cash upon the
satisfaction of certain milestone achievements, as defined pursuant to the share purchase agreement. This business became part
of the Company's Mobility Apps division. Transaction costs associated with the acquisition were approximately $0.2 million,
all of which the Company expensed during the year ended December 31, 2013 and are included in General and administrative
expense in the accompanying consolidated statements of income. In September 2014, the Company paid $2.0 million of the
contingent consideration balance based on milestones achieved. The Company is expected to pay the remaining balance of up
to $1.0 million if the final milestone is achieved pursuant to the share purchase agreement.
During the fourth quarter of 2013, the Company acquired all of the issued and outstanding securities of a privately-held
company. The total cash consideration for this transaction was approximately $5.5 million. This business became part of the
Company's Enterprise and Service Provider division. Transaction costs associated with the acquisition were approximately $0.3
million, of which the Company expensed $0.1 million during the year ended December 31, 2014, and are included in General
and administrative expense in the accompanying consolidated statements of income.
Subsequent Event
On January 8, 2015, the Company acquired all of the issued and outstanding securities of Sanbolic, Inc. (“Sanbolic”).
Sanbolic is an innovator and leader in workload-oriented storage virtualization technologies. The Sanbolic technology,
combined with XenDesktop, XenApp, and XenMobile products will enable the Company to develop a range of differentiated
solutions that will reduce the complexity of Microsoft Windows application delivery and desktop virtualization deployments.
Sanbolic will become part of the Company's Enterprise and Service Provider division. The total preliminary consideration for
this transaction was approximately $89.4 million, net of $0.2 million cash acquired, and was paid in cash. Transaction costs
associated with the acquisition are currently estimated at $0.4 million, of which the Company expensed $0.2 million during the
year ended December 31, 2014, and are included in General and administrative expense in the accompanying consolidated
statements of income. In addition, in connection with the acquisition, the Company assumed non-vested stock units which were
converted into the right to receive, in the aggregate, up to 37,057 shares of the Company's common stock, for which the vesting
period began on the closing of the transaction.