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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Note 6 – Business Combinations
On February 10, 2008, we acquired Ageia Technologies, Inc., or Ageia, an industry leader in gaming physics technology. The combination of the graphics
processing unit, or GPU, and physics engine brands is expected to enhance the visual experience of the gaming world. The aggregate purchase price consisted of
total consideration of approximately $29.7 million.
On November 30, 2007, we completed our acquisition of Mental Images, Inc., or Mental Images, an industry leader in photorealistic rendering technology.
The aggregate purchase price consisted of total consideration of approximately $88.3 million. The total consideration also includes approximately $7.8 million
which reflects an initial investment we made in Mental Images in prior periods and $5.6 million primarily towards guaranteed payments subsequent to completion
of our acquisition.
We allocated the purchase price of each of these acquisitions to tangible assets, liabilities and identifiable intangible assets acquired, as well as IPR&D, if
identified, based on their estimated fair values. The excess of purchase price over the aggregate fair values was recorded as goodwill. The fair value assigned to
identifiable intangible assets acquired was based on estimates and assumptions made by management. Purchased intangibles are amortized on a straight
-
line basis
over their respective useful lives.
As of January 25, 2009, the estimated fair values of the purchase price allocated to assets we acquired and liabilities we assumed on the respective
acquisition dates were as follows:
Mental Images
Ageia
Fair Market Values
(In thousands)
Cash and cash equivalents
$
988
$
1,744
Marketable securities
-
28
Accounts receivable
1,462
911
Prepaid and other current assets
214
1,149
Property and equipment
830
169
In
-
process research and development
4,000
-
Goodwill
59,252
19,198
Intangible assets:
Existing technology
14,400
13,450
Customer relationships
6,500
170
Patents
5,000
-
Trademark
1,200
900
Total assets acquired
93,846
37,719
Current liabilities
(1,243
)
(6,969
)
Acquisition related costs
(1,313
)
(1,030
)
Long
-
term liabilities
(2,970
)
-
Total liabilities assumed
(5,526
)
(7,999
)
Purchase price allocation
$
88,320
$
29,720
85