EMC 2006 Annual Report Download - page 60

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
2007 and the liabilities associated with the lease and contract terminations through 2008. Management is in the process of determining whether additional
liabilities relating to employee termination benefits or other contractual obligations are required to be recorded.
Other 2006 Acquisitions
In May 2006, we acquired all of the outstanding capital stock of Kashya, Inc. ("Kashya"), a provider of enterprise-class data replication and data
protection software. The acquisition of Kashya allows us to expand our software portfolio for replication across heterogeneous environments.
In May 2006, we acquired all of the outstanding capital stock of Interlink Group, Inc. ("Interlink"), an IT professional services firm that specializes in
application development, IT infrastructure, enterprise integration, enterprise content management and customer relationship management for Microsoft
environments. The acquisition of Interlink strengthens and expands our growing Microsoft solutions practice.
In June 2006, we acquired all of the outstanding capital stock of nLayers Ltd. ("nLayers"), a leader in application discovery and mapping software. The
acquisition further expands our resource management portfolio, enabling automated comprehensive root-cause and impact analysis across all technology
domains, including networks, applications and storage.
In June 2006, we acquired the assets of ProActivity Software Solutions Ltd. ("ProActivity"), a provider of content management software for business
process management. ProActivity provides tools to monitor, analyze and optimize business processes. The acquisition further expands the EMC Documentum
product suite's process modeling, process execution and process integration capabilities.
In June 2006, our VMware subsidiary acquired all of the outstanding capital stock of Akimbi Systems, Inc. ("Akimbi"), a developer of software that
builds upon and leverages virtualization technology to improve the efficiency and effectiveness of enterprise application development operations and the IT
organizations that support them. Through the acquisition of Akimbi, we intend to enhance our capabilities for virtualizing information by providing
virtualization solutions to the development and test environments.
In September 2006, we acquired all of the outstanding capital stock of Network Intelligence. Network Intelligence specializes in transforming
enterprise-wide data into automated compliance and security information and, together with the acquisition of RSA, enables us to assist customers in securing
their information throughout its lifecycle and reduce the associated cost of regulatory compliance.
In November 2006, we acquired all of the outstanding capital stock of Avamar Technologies, Inc. ("Avamar"), a leading provider of enterprise data
protection software that allows corporations to efficiently move, store, and leverage information for business value. Avamar advances EMC's core strengths in
information protection and recovery management, changing the way customers protect their data and accelerating the transition from tape to disk-based
recovery solutions.
The aggregate purchase price, net of cash received, for all acquisitions other than RSA was $624.7 million, which consisted of $598.8 million of cash,
$13.3 million in fair value of our stock options issued in exchange for the acquirees' stock options and $12.6 million of transaction costs, which primarily
consisted of fees incurred by us for financial advisory, legal and accounting services.
The consolidated financial statements include the results of each of the aforementioned companies from their respective dates of acquisition. The
purchase price for each company has been allocated to the assets acquired and the liabilities assumed based on estimated fair values as of the respective
acquisition dates. The purchase price allocations are preliminary and a final determination of required purchase accounting adjustments will be made upon
finalization of our integration activities. The total goodwill recognized from the aforementioned acquisitions was $478.3 million, of which $6.3 million is
deductible for income tax purposes. Of this amount, we allocated $223.1 million to our information storage segment, $55.5 million to our content
management and archiving segment, $77.3 million to our VMware virtual infrastructure segment and $122.4 million to our RSA information security
segment.
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