LifeLock 2013 Annual Report Download - page 75

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In the first quarter of 2012, we acquired ID Analytics, a provider of fraud and risk solutions and a strategic technology partner of ours since 2009. The
aggregate purchase price consisted of approximately $166,474 of cash paid at the closing (cash paid net of cash acquired was $157,430) and 1,586,778
shares of Series E-1 convertible redeemable preferred stock with a fair value of approximately $19,476 as of the acquisition date. We accounted for the
acquisition using the acquisition method. Accordingly, we allocated the total purchase price to the tangible and identifiable intangible assets acquired and the
net liabilities assumed based on their respective fair values on the acquisition date. As a result of the acquisition, we recorded goodwill in the amount of
$129,428, of which $69,891 was assigned to our consumer segment and $59,537 was assigned to our enterprise segment, identifiable definite-lived
intangible assets of $57,500, which was comprised of $4,000 related to trade name and trademarks, $33,000 related to technology, and $20,500 related to
customer relationships, and net liabilities assumed of $978. The overall weighted-average life of the identifiable definite-lived intangible assets acquired was
7.6 years, which will be amortized over their respective useful lives. Our consolidated financial statements for the year ended December 31, 2012 include the
results of operations of ID Analytics from the date of acquisition.
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On December 11, 2013, we acquired Lemon, a mobile wallet innovator. In connection with this acquisition, we launched our new LifeLock mobile
application. The aggregate purchase price consisted of approximately $42,369 of cash paid at the closing (net of cash acquired of $3,315).
Our consolidated financial statements for the year ended December 31, 2013 include the results of operations of Lemon from the date of acquisition.
The total purchase consideration has been preliminarily allocated to the assets acquired and liabilities assumed at their estimated fair values as of the date of
acquisition, as determined by management and, with respect to identifiable intangible assets, by management with the assistance of a valuation provided by a
third-party valuation firm. The excess of the purchase price over the amounts allocated to assets acquired and liabilities assumed has been recorded as
goodwill in our consumer segment. The estimated fair values of assets acquired and liabilities assumed are considered preliminary and are based on
information that was available as of the acquisition date. Certain items, specifically the fair value of intangible assets, deferred taxes, and taxes payable may
be subject to change as additional information is received and certain tax returns are filed. Thus, the provisional measurements of fair value are subject to
change. We expect to finalize the valuation as soon as practicable, but no later than one year from the date of acquisition.
We accounted for this acquisition using the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business
Combinations. Accordingly, we have preliminarily allocated the purchase price of the acquired assets and liabilities based on their estimated fair values as of
the acquisition date as summarized in the following table:
Net assets assumed $ 3,184
Deferred tax assets, net – noncurrent 11,929
Intangible assets acquired 3,880
Goodwill 26,691
Total purchase price consideration $ 45,684
The following is a description of the allocation of the purchase price to the net assets acquired:
Cash $ 3,315
Prepaid expenses and other current assets 128
Total tangible assets acquired 3,443
Accrued expenses (145)
Deferred revenue (114)
Total liabilities assumed (259)
Net assets assumed $ 3,184
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