Citrix 2007 Annual Report Download - page 93

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
consideration for the Ardence Acquisition was $51.7 million comprised of cash paid of $50.3 million and
acquisition related costs of approximately $1.4 million. As part of the Ardence Acquisition, the Company
assumed approximately 0.1 million non-vested stock-based awards and approximately 0.1 million stock options
upon the closing of the transaction. The sources of funds for consideration paid in the transaction consisted of
available cash and investments.
XenSource, Inc
In October 19, 2007, the Company completed its acquisition of all of the issued and outstanding capital
stock of XenSource, Inc. (the “XenSource Acquisition” or “XenSource”), a privately held leader in enterprise-
grade virtual infrastructure solutions. The acquisition positions the Company in adjacent server and desktop
virtualization markets that will allow it to extend its leadership in the broader Application Delivery Infrastructure
market by adding key enabling technologies that make the end-to-end computing environment more flexible,
dynamic and responsive to business change. The total consideration for the XenSource Acquisition was
approximately, $328.5 million, comprised of approximately 7.1 million shares of the Company’s common stock
valued at $232.3 million, $92.5 million in cash and approximately $3.7 million in direct transaction costs. In
addition, in connection with the XenSource Acquisition the Company issued approximately 1.3 million unvested
shares of its common stock and assumed approximately 3.3 million stock options each of which will be
exercisable for the right to receive one share of the Company’s common stock upon vesting. The sources of funds
for cash consideration paid in the transaction consisted of available cash and investments. For more information
regarding the XenSource Acquisition see Note 16.
Revenues from products acquired in the Ardence Acquisition and the XenSource Acquisition (collectively,
the 2007 Acquisitions are primarily included in the Company’s Product License revenue. The 2007 Acquisitions
results of operations have been included in the Company’s consolidated results of operations beginning after the
date of the respective acquisitions.
Purchase Accounting for the 2007 Acquisitions
Under the purchase method of accounting, the purchase prices for the 2007 Acquisitions were allocated to the
acquired companies’ net tangible and intangible assets based on their estimated fair values as of the date of the
completion of the acquisitions. The allocation of the total purchase prices are summarized below (in thousands):
Ardence XenSource
Purchase Price
Allocation
Asset
Life
Purchase Price
Allocation
Asset
Life
Current assets ................................. $ 6,326 $ 19,177
Property and equipment ......................... 917 Various 1,224 Various
In-process research and development .............. 1,200 8,600
Other assets .................................. — 112
Intangible assets ............................... 22,160 1-7 years 146,440 2-8 years
Goodwill ..................................... 43,187 Indefinite 214,299 Indefinite
Assets acquired ............................... 73,790 389,852
Current liabilities assumed ....................... (10,851) (4,179)
Long-term liabilities assumed .................... (2,673) —
Deferred tax liabilities, non-current ................ (8,577) (57,214)
Net assets acquired, including direct transaction
costs ...................................... $ 51,689 $ 328,459
F-19