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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 4 — Acquisitions and Divestiture
2011 Acquisitions
IronKey Systems, Inc.
On October 4, 2011 we acquired the secure data storage hardware assets of IronKey Systems Inc. (IronKey). The
purchase price consisted of a cash payment of $19.0 million. We also entered into a strategic partnership whereby we
received a license from IronKey for its secure storage management software and service as well as an exclusive license to
use the IronKey brand for secure storage products including online cloud-based security service.
The purchase price allocation resulted in goodwill of $9.4 million, consisting of expected strategic synergies and
intangible assets that do not qualify for separate recognition. IronKey is included in our existing Americas operating segment
and is included in the Mobile Security reporting unit for the purposes of goodwill impairment testing. This goodwill is deductible
for tax purposes. See Note 6 here for more information regarding goodwill.
The following table illustrates our allocation of the purchase price to the assets acquired and liabilities assumed:
Amount
(In millions)
Accounts receivable and other assets ............................................... $ 3.5
Inventories ................................................................... 2.1
Intangible assets ............................................................... 7.8
Goodwill ..................................................................... 9.4
Accounts payable and other liabilities ............................................... (3.8)
$19.0
Our allocation of the purchase price to the assets acquired and liabilities assumed resulted in the recognition of the
following intangible assets:
Amount
Weighted
Average
Life
(In millions)
Trade name ......................................................... $0.8 2 years
License ............................................................ 1.9 7years
Customer relationships ................................................. 0.4 7years
Distributor relationships ................................................ 0.9 9years
Proprietary technology ................................................. 3.8 4years
$7.8
ProStor Systems, Inc.
On August 29, 2011, we acquired certain assets of ProStor Systems, Inc. (ProStor), including the InfiniVault tiered
storage system and other related technologies. The purchase price consisted of a cash payment of $0.5 million and resulted
in no goodwill.
Memory Experts International Inc. (MXI Security)
On June 4, 2011, we acquired the assets of MXI Security, a leader in high-security and privacy technologies, from
Memory Experts International Inc. MXI Security sells encrypted and biometric USB drives (MXI Stealth Key), encrypted and
biometric hard disk drives (MXI Stealth HD), secure portable desktop solutions (Stealth Zone), and software solutions. MXI
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