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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Our allocation of the purchase price to the assets acquired and liabilities assumed resulted in the recognition of the
following intangible assets:
Amount
Weighted
Average
Life
(In millions)
Tradename ......................................................... $0.8 2 years
License ............................................................ 1.9 7years
Customer relationships ................................................. 0.4 7years
Distributor relationships ................................................ 0.9 9years
Proprietary technology ................................................. 3.8 4years
$7.8
These intangible assets were not impaired as a part of the impairment recorded during the fourth quarter of 2012 as
discussed further in Note 6 — Intangible Assets and Goodwill.
Memory Experts International, Inc. (MXI Security)
On June 4, 2011, we acquired the assets of MXI Security, a leader in high-security and privacy technologies, from
Memory Experts International Inc., (MXI). MXI sells encrypted and biometric USB drives, encrypted and biometric hard disk
drives, secure portable desktop solutions, and software solutions. MXI products contain various security features such as
password authentication, encryption and remote manageability. The purchase price consisted of a cash payment of
$24.5 million and contingent consideration for potential additional future payments of up to $45.0 million (considered to have
an estimated fair value of $9.2 million at the time of the acquisition) for a total purchase price of $33.7 million. MXI is a part of
our TSS reporting segment.
The purchase price allocation resulted in goodwill of $21.9 million, primarily attributable to expected strategic synergies
and intangible assets that do not qualify for separate recognition and is deductible for tax purposes. Goodwill associated with
MXI is included in our Mobile Security reporting unit for the purposes of goodwill impairment testing. See Note 6 — Intangible
Assets and Goodwill for more information regarding goodwill. The comparability of our results with this acquisition was not
materially impacted and therefore, pro forma disclosures have not been presented.
The following table illustrates our allocation of the purchase price to the assets acquired and liabilities assumed:
Amount
(In millions)
Accounts receivable and other assets ............................................... $ 0.8
Inventories ................................................................... 1.1
Intangible assets ............................................................... 10.6
Goodwill ..................................................................... 21.9
Accounts payable and other liabilities ............................................... (0.7)
$33.7
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