Incredimail 2012 Annual Report Download - page 113

PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
The primary reasons for this acquisition include; Sweet IM’s back-
end systems, the talent and professional background of its
employees, and its product suite, so as to include other consumer products that bear similar characteristics appealing to its
unique demographic segment. A significant amount of the acquisition was recorded as goodwill due to the synergies with
Sweet IM.
Under business combination accounting, the total purchase price was allocated to Sweet IM’
s net tangible and intangible
assets based on their estimated fair values as set forth below. The excess of the purchase price over the net tangible and
identifiable intangible assets was recorded as goodwill.
Intangible assets:
In performing the purchase price allocation, the Company considered, among other factors, analysis of historical financial
performance, highest and best use of the acquired assets and estimates of future performance of Sweet IM's products. The
fair value of intangible assets was based on market participant approach to valuation, performed by a third party valuation
firm using estimates and assumptions provided by management. The following table sets forth the components of
intangible assets associated with Sweet IM acquisition:
(*) Will be determined upon completion of the development
NOTE 3:
-
ACQUISITIONS (Cont.)
Cash
$
2,733
Restricted cash
10,260
Trade receivables
7,473
Other receivables and prepaid expenses
1,253
Property and equipment
216
Long
-
term prepaid expenses and other
70
Trade payables
(2,318
)
Accrued expenses and other liabilities
(5,148
)
Payment obligation related to acquisition
(9,958
)
Intangible assets
30,756
Deferred tax liability
(3,786
)
Goodwill
12,682
Total purchase price
$
44,233
Fair value
Useful life
Technology
$
20,066
5 years
Logo
5,242
4 years
IP R&D
5,448
(*)
Total intangible assets
$
30,756
F
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