Computer Associates 2007 Annual Report Download - page 104
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The acquisition cost of Wily has been allocated to assets acquired and liabilities assumed based on estimated fair values at the
date of acquisition as follows:
(IN MILLIONS)
Cash and cash equivalents $13
Purchased software 54
Deferred tax assets 34
Other assets assumed 8
Other intangibles—customer relationships 119
Other intangibles—tradenames 7
Goodwill 225
Deferred tax liabilities (67)
Deferred revenue (10)
Other liabilities assumed (9)
Purchase price $374
Purchased software products are being amortized over an estimated life of eight years, and customer relationships and
tradenames will be amortized over ten years.
The allocation of a significant portion of the Wily purchase price to goodwill was predominantly due to the relatively short lives
of the acquired developed technology assets, whereby a substantial amount of the purchase price was based on earnings
beyond the estimated lives of the intangible assets.
During the third quarter of fiscal year 2006, the Company completed its acquisition of iLumin. The total purchase price of the
acquisition was approximately $48 million. iLumin was a privately held provider of enterprise message management and
archiving software. iLumin’s Assentor product line has been added to the Company’s storage management solutions. The
acquisition of iLumin has been accounted for as a purchase and accordingly, its results of operations have been included in the
Consolidated Financial Statements since the date of its acquisition, October 14, 2005.
The acquisition cost of iLumin has been allocated to assets acquired and liabilities assumed based on estimated fair values at
the date of acquisition as follows:
(IN MILLIONS)
Purchased software products $2
Other assets 4
Customer relationships 21
Goodwill 35
Deferred tax liability (8)
Other liabilities assumed (6)
Purchase price $48
Purchased software products are being amortized over an estimated life of seven years, and customer relationships will be
amortized over ten years.
The allocation of a significant portion of the iLumin purchase price to goodwill was predominantly due to the relatively short
lives of the acquired developed technology assets, whereby a substantial amount of the purchase price was based on earnings
beyond the estimated lives of the intangible assets.
During the second quarter of fiscal year 2006, the Company acquired the common stock of Niku, including its information
technology governance (ITG) solution, for approximately $337 million. In addition, the Company converted options to acquire
the common stock of Niku and incurred acquisition costs of approximately $5 million and $3 million, respectively, for an
aggregate purchase price of $345 million. Niku was a provider of information technology management and governance
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