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3. Business Combinations
(a) Acquisition Summary
The Company completed eight business combinations during fiscal 2014. A summary of the allocation of the total purchase
consideration is presented as follows (in millions):
Fiscal 2014
Purchase
Consideration
Net Tangible
Assets Acquired
(Liabilities
Assumed)
Purchased
Intangible
Assets Goodwill
Composite Software, Inc. ........................................ $ 160 $(10) $ 75 $ 95
Sourcefire, Inc. ................................................ 2,449 81 577 1,791
WhipTail Technologies, Inc. ..................................... 351 (34) 105 280
Tail-f Systems ................................................. 167 (7) 61 113
All others (four in total) ......................................... 54 (5) 20 39
Total acquisitions .......................................... $3,181 $ 25 $838 $2,318
On July 29, 2013, the Company completed its acquisition of privately held Composite Software, Inc. (“Composite Software”),
a provider of data virtualization software and services. Composite Software provides technology that connects many types of
data from across the network and makes it appear as if the data is in one place. With its acquisition of Composite Software, the
Company intends to extend its next-generation services platform by connecting data and infrastructure. Revenue from the
Composite Software acquisition has been included in the Company’s Service category.
On October 7, 2013, the Company completed its acquisition of Sourcefire, Inc. (“Sourcefire”), a provider of intelligent
cybersecurity solutions. Sourcefire delivers innovative, highly automated security through continuous awareness, threat
detection, and protection across its portfolio, including next-generation intrusion prevention systems, next-generation
firewalls, and advanced malware protection. With the Sourcefire acquisition, the Company aims to accelerate its security
strategy of defending, discovering, and remediating advanced threats to provide continuous security solutions to the
Company’s customers in more places across the network. Product revenue from the Sourcefire acquisition has been included
in the Company’s Security product category.
On October 28, 2013, the Company completed its acquisition of privately held WhipTail Technologies, Inc. (“WhipTail”), a
provider of high-performance, scalable solid state memory systems. With its WhipTail acquisition, the Company aims to
strengthen its Unified Computing System (UCS) strategy and enhance application performance by integrating scalable solid-
state memory into the UCS’s fabric computing architecture. Product revenue from the WhipTail acquisition has been included
in the Company’s Data Center product category.
On July 8, 2014, the Company completed its acquisition of privately held Tail-f Systems (“Tail-f”), a provider of multi-vendor
network service orchestration solutions for traditional and virtualized networks. Tail-f’s products help customers implement
applications, network services, and solutions across networking devices. With the Tail-f acquisition, the Company intends to
advance its cloud virtualization strategy.
The total purchase consideration related to the Company’s business combinations completed during fiscal 2014 consisted of
either cash consideration or cash consideration along with vested share-based awards assumed. The total cash and cash
equivalents acquired from these business combinations was approximately $134 million.
Fiscal 2013 Business Combinations
Allocation of the purchase consideration for business combinations completed in fiscal 2013 is summarized as follows (in
millions):
Fiscal 2013
Purchase
Consideration
Net
Liabilities
Assumed
Purchased
Intangible
Assets Goodwill
NDS Group Limited ................................................. $5,005 $(185) $1,746 $3,444
Meraki, Inc. ........................................................ 974 (59) 289 744
Intucell, Ltd. ....................................................... 360 (23) 106 277
Ubiquisys Limited ................................................... 280 (30) 123 187
All others (nine in total) .............................................. 363 (25) 127 261
Total acquisitions ............................................... $6,982 $(322) $2,391 $4,913
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