Enom 2011 Annual Report Download - page 110

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On August 8, 2011, the Company acquired 100% of the equity of IndieClick Media Group, Inc., an online branding and advertising company that
represents niche-focused online properties in the entertainment, music, film, fashion and comedy categories, for approximately $13,038 (subject to
adjustment) in cash. $1,400 of the purchase consideration was subject to a hold back to satisfy post-closing indemnification obligations and/or post-closing
working capital adjustments. Any remaining portion of such hold back amount that is not subject to then pending claims will be paid to the selling
shareholders on the 18-month anniversary of the closing of the transaction.
For all acquisitions completed during the year ended December 31, 2011, developed technology has a weighted-average useful life of 4.1 years,
customer relationships have a weighted-average useful life of 6.7 years, non-compete arrangements have a weighted-average useful life of 2.3 years and trade
names and other long-lived intangible assets have a weighted-average useful life of 9 years. Goodwill, which is comprised of the excess of the purchase
consideration over the fair value of the identifiable net assets acquired, is primarily derived from assembled workforce and the Company's ability to generate
synergies with its services. Goodwill of approximately $16,300 is expected to be deductible for tax purposes.
Supplemental Pro forma Information (unaudited)
Supplemental information on an unaudited pro forma basis, as if the 2011 acquisitions had been consummated as of January 1, 2010, is as follows:
Year ended December 31, Year ended December 31,
2010 2011
(unaudited)
Revenue $ 261,897 $ 328,925
Net loss (6,925) (22,311)
Disclosure of revenue and earnings for the 2011 acquisitions included in the consolidated results of the Company for the post acquisition periods is
impracticable because their operations were integrated into our existing business and not managed or tracked on a separate basis.
The unaudited pro forma supplemental information is based on estimates and assumptions which the Company believes are reasonable and reflects
amortization of intangible assets as a result of the acquisitions. The pro forma results are not necessarily indicative of the results that have been realized had
the acquisitions been consolidated as of January 1, 2010.
14. Business Segments
The Company operates in one operating segment. The Company’s chief operating decision maker (“CODM”) manages the Company’s operations
on a consolidated basis for purposes of evaluating financial performance and allocating resources. The CODM reviews separate revenue information for its
Content & Media and Registrar offerings. All other financial information is reviewed by the CODM on a consolidated basis. All of the Company’s principal
operations and decision- making functions are located in the United States. Revenue generated outside of the United States is not material for any of the
periods presented.
Revenue derived from the Company’s Content & Media and Registrar Services is as follows
Year ended December 31,
2009 2010 2011
Content & Media revenue
Owned & operated $ 73,204 $ 110,770 $ 157,089
Network 34,513 42,140 48,361
Total Content & Media revenue 107,717 152,910 205,450
Registrar revenue 90,735 100,026 119,416
Total Revenue $ 198,452 $ 252,936 $ 324,866
F-31