EMC 2008 Annual Report Download - page 71

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
In the third quarter of 2007, we acquired all of the outstanding capital stock of BusinessEdge Solutions Inc., a provider of strategy, process and
technology consulting services in three distinctive vertical markets: financial services, communications, media and content, and life sciences. This acquisition
expands and strengthens our services offerings within the Information Storage segment.
In the third quarter of 2007, we acquired all of the outstanding capital stock of Tablus, Inc., a provider of data loss prevention solutions. This acquisition
adds industry-leading data discovery and classification, monitoring, and data loss prevention capabilities to our data Security portfolio.
In the fourth quarter of 2007, we acquired all of the outstanding capital stock of Voyence, Inc., a leading provider of network configuration and change
management solutions. This acquisition complements and extends our position in the IT service management marketplace within the Information Storage
segment.
In the fourth quarter of 2007, we acquired all of the outstanding capital stock of Berkeley Data Systems, Inc., a leading provider of online information
backup and recovery services. Berkeley Data Systems, Inc. provides Mozy – an online subscription service for the protection of data that resides on desktops,
laptops and remote office servers.
In the fourth quarter of 2007, we acquired Dokumentum Services CIS, a distribution and consulting services provider focused on providing marketing,
support and maintenance, consulting, training and localization services related to our Content Management software. The acquisition fully expands our
distribution and service delivery capabilities in Russia and Eastern Europe.
In the second quarter of 2007, VMware acquired all of the outstanding capital stock of one business, a provider of solutions for the discovery and
management of virtual desktop machines. This acquisition allows VMware to expand its growing virtualization capabilities.
In the third quarter of 2007, VMware acquired all of the outstanding capital stock of a business that is a maker of host intrusions prevention products.
Through this acquisition, VMware further enhanced the security of its virtualization platform.
In the third quarter of 2007, VMware acquired all of the outstanding capital stock of one business, a provider of IT process orchestration software for
virtual environments. This acquisition enables VMware customers to standardize and automate their IT management processes on VMware infrastructure.
In the fourth quarter of 2007, VMware acquired all of the outstanding capital stock of one business, a provider of outsourced software application
development services. This acquisition expands VMware's software development capabilities.
The aggregate purchase price, net of cash acquired for all 2007 acquisitions was $696.6 million, which consisted of $689.9 million of cash, $4.6 million
in fair value of our stock options issued in exchange for the acquirees' stock options and $2.1 million of transaction costs, which primarily consisted of fees
incurred by us for financial advisory, legal and accounting services. None of these acquisitions were individually material to EMC. The fair value of our stock
options was estimated assuming no expected dividends and the following weighted average assumptions:
Expected term (in years) 2.6
Expected volatility 29.8%
Risk-free interest rate 4.4%
The consolidated financial statements include the results of the aforementioned companies from their respective dates of acquisition. The purchase price
for each company has been allocated to the assets acquired and the liabilities assumed based on estimated fair values as of the respective acquisition dates.
The total goodwill recognized from the aforementioned acquisitions was $537.9 million.
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