IBM 2006 Annual Report Download - page 77

Black
MAC
390 CG10
(Dollars in millions)
INTERNET MRO
AMORTIZATION SECURITY SOFTWARE, OTHER
2006 ACQUISITIONS LIFE (IN YEARS) SYSTEMS, INC. INC. ACQUISITIONS
Current assets $  $  $ 
Fixed assets/non-current   
Intangible assets:
Goodwill N/A   
Completed technology  to    
Client relationships  to    
Other identifiable intangible assets  to    
In-process R&D  — —
Total assets acquired ,  
Current liabilities () () ()
Non-current liabilities () () ()
Total liabilities assumed () () ()
Total purchase price $, $  $
N/A—Not applicable
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
INTERNATIONAL BUSINESS MACHINES CORPORATION AND SUBSIDIARY COMPANIES
75
2005
In 2005, the company completed 16 acquisitions at an aggregate cost
of $2,022 million, which was paid in cash. The cost of these acquisi-
tions are reported in the Consolidated Statement of Cash Flows net of
acquired cash and cash equivalents. The table on page 76 represents
the purchase price allocations for all of the 2005 acquisitions. The
Ascential Corporation (Ascential) acquisition is shown separately
given its significant purchase price.
ASCENTIAL – On April 29, 2005, the company acquired 100 percent
of the outstanding common shares of Ascential for cash consideration
of $1,140 million. Ascential is a provider of enterprise data integration
software used to help build enterprise data warehouses, power busi-
ness intelligence systems, consolidate enterprise applications, create
and manage master repositories of critical business information and
enable on demand data access. Ascential complements and strength-
ens the company’s information and integration offerings and further
extends the company’s ability to enable clients to become on demand
businesses by providing a single, agile infrastructure for delivering
accurate, consistent, timely and coherent information. Ascential was
integrated into the Software segment upon acquisition and Goodwill,
as reflected in the table on page 76, has been entirely assigned to the
Software segment. The overall weighted-average useful life of the
intangible assets purchased, excluding Goodwill, is 3.9 years.
OTHER ACQUISITIONS – The company acquired 15 additional
companies that are presented as Other Acquisitions in the table on
page 76. Four of the acquisitions were technology services-related
companies that were integrated into the Global Technology Services
segment: Network Solutions; Classic Blue; Corio; and Equitant. One
of the acquisitions, HealthLink, was integrated into the Global
Business Services segment. Nine of the acquisitions were software-
related companies that were integrated into the Software segment:
iPhrase; Data Power Technology, Inc.; Bowstreet; Collation Inc.;
DWL; Isogon Corporation; PureEdge Solutions, Inc.; SRD; and
Gluecode. One acquisition, Meiosys, was integrated into the Systems
and Technology Group segment. The purchase price allocations
resulted in aggregate Goodwill of $791 million, of which $456 million
was assigned to the Software segment; $239 million was assigned to
the Global Technology Services segment; $62 million was assigned to
the Global Business Services segment; and $34 million was assigned
to the Systems and Technology Group segment. The overall weighted-
average useful life of the intangible assets purchased, excluding
Goodwill, is 3.1 years.