Computer Associates 2010 Annual Report Download - page 74

uniquely support customers as they seek to gain maximum business benefits from emerging cloud computing models. The
total purchase price of the acquisition was approximately $100 million.
•Oblicore, Inc. (Oblicore) — On January 8, 2010, the Company acquired 100% of the voting equity interests of Oblicore, a
privately held provider of service level management software for enterprises and service providers. Oblicore supports and
strengthens the Company’s ability to set, measure, and optimize service levels to meet business expectations across
enterprise and cloud environments. Oblicore’s solutions also extend the Company’s capabilities in cloud vendor
management and assurance of cloud service quality. The total purchase price of the acquisition was approximately
$20 million.
•NetQoS, Inc. (NetQoS) — On November 19, 2009, the Company acquired 100% of the voting equity interests of NetQoS, a
provider of network performance management and service delivery solutions. NetQoS solutions will extend the Company’s
capabilities in the areas of application performance management and network and system management. The total
purchase price of the acquisition was approximately $200 million.
•Cassatt Corporation (Cassatt) — On June 2, 2009, the Company acquired the data center automation and policy-based
optimization assets of Cassatt. Cassatt was a provider of innovative cloud computing software. The Company’s purchase
price for the Cassatt assets is immaterial.
Transaction costs for these acquisitions were immaterial. The allocation of purchase price to acquired identifiable assets,
including intangible assets, is preliminary for Nimsoft, 3Tera and Oblicore because the Company has not completed its
determination of the fair value of the intangible assets acquired and the historical tax records of the acquired business. The
following represents the preliminary allocation of the purchase price and estimated useful lives to the acquired net assets of
Nimsoft, 3Tera and Oblicore.
(DOLLARS IN MILLIONS) AMOUNT
ESTIMATED
USEFUL LIFE
Finite-lived intangible assets
(1)
$ 35 5-7 years
Purchased software 265 10 years
Goodwill 195 Indefinite
Other liabilities assumed net of other assets (22) —
Purchase price $ 473
(1) Includes customer relationships and trade names.
Approximately $120 million and $11 million of the goodwill is expected to be deductible for tax purposes for Nimsoft and
Oblicore, respectively. None of the goodwill for 3Tera is expected to be deductible for tax purposes.
NetQoS: The total purchase price was allocated to the net tangible and intangible assets and liabilities based upon their estimated
fair values as of November 19, 2009. The excess purchase price over the estimated value of the net tangible and identifiable
intangible assets was recorded as goodwill. The allocation of a significant portion of the purchase price to goodwill was
predominantly due to the intangible assets that are not separable, such as assembled workforce and going concern.
The following represents the allocation of the purchase price and estimated useful lives to the acquired net assets of NetQoS.
This allocation was finalized during the fourth quarter of fiscal year 2010, and resulted in a revision of the value assigned to
purchased software from that originally reported in the third quarter of approximately $35 million, the amortization effects of
which are immaterial.
(DOLLARS IN MILLIONS) AMOUNT
ESTIMATED
USEFUL LIFE
Finite-lived intangible assets
(1)
$ 27 5-6 years
Purchased software 104 10 years
Goodwill 106 Indefinite
Deferred tax liabilities (39) —
Other assets net of other liabilities assumed 2—
Purchase price $ 200
(1) Includes customer relationships and trade names.
None of the goodwill is expected to be deductible for tax purposes.
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