Oracle 2007 Annual Report Download - page 89

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2008
Our cumulative investment in i-flex as of May 31, 2008 was approximately $2.1 billion, which consisted of
$2,039 million of cash paid for common stock and $31 million in transaction costs and other expenses. Our
cumulative investment in i-flex has been allocated to i-flex’s net tangible and identifiable intangible assets based on
their estimated fair values as of the respective dates of acquisition of the interests. The minority interest in the net
assets of i-flex has been recorded at historical book values. In allocating the purchase price, we recorded
approximately $1.6 billion of goodwill, $273 million of identifiable intangible assets, $187 million of net tangible
assets and $46 million of in-process research and development.
Other Fiscal 2007 Acquisitions
A summary of our fiscal 2007 acquisitions and asset purchases other than our acquisitions of Hyperion and our i-flex
majority owned subsidiary is as follows:
Cash Fair Value of Stock Total Net Tangible IPR&D Intangible
(in millions) Consideration Awards Assumed Consideration Assets Expense Assets Goodwill
Portal Software, Inc. $ 215 $ 8 $ 223 $ 89 $ 20 $ 92 $ 22
Stellent, Inc. 425 18 443 76 17 182 168
MetaSolv, Inc. 218 9 227 54 4 91 78
Other 400 11 411 (122) 8 208 317
Total $ 1,258 $ 46 $ 1,304 $ 97 $ 49 $ 573 $ 585
Our acquisitions of Portal Software in July 2006 and MetaSolv in December 2006 were to expand our application
offerings to the telecommunications industry. Our acquisition of Stellent in December 2006 was to further extend our
enterprise content management product offerings. We have included the financial results of the related acquired
companies in our consolidated financial statements as of each acquisition date.
Fiscal 2006 Acquisitions
Siebel Systems, Inc.
On January 31, 2006, we completed our acquisition of Siebel pursuant to our Merger Agreement dated September 12,
2005. We acquired Siebel to expand our customer relationship management (CRM) applications offerings.
The total purchase price for Siebel was $6.1 billion which consisted of $4,073 million in cash paid to acquire the
outstanding common stock of Siebel, $1,763 million for the value of our common stock issued in exchange for Siebel
outstanding common stock, $245 million for the fair value of Siebel stock awards assumed and $50 million for
transaction costs. In allocating the purchase price based on estimated fair values, we recorded approximately
$2,331 million in goodwill, $1,564 million of identifiable intangible assets, $2,172 million of net tangible assets and
$64 million of IPR&D expense.
Other Fiscal 2006 Acquisitions
During fiscal 2006, we acquired several software companies and purchased certain technology and development
organizations for approximately $682 million, including transaction costs, which included cash paid of $648 million
and the fair value of options assumed of $34 million. We recorded approximately $487 million of goodwill,
$173 million of identifiable intangible assets, $14 million of IPR&D expense and $8 million of net tangible assets in
connection with these acquisitions during fiscal 2006. We have included the effects of these transactions in our
results of operations prospectively from the respective dates of the acquisitions.
Unaudited Pro Forma Financial Information
The unaudited financial information in the table below summarizes the combined results of operations of Oracle,
BEA, Agile, Hyperion and other collectively significant companies acquired during fiscal 2008 and 2007, on a pro
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Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠