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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
EVault, Inc.
In order to expand its current product and service offerings, in January 2007, the Company completed its
acquisition of EVault in an all cash transaction valued at approximately $186 million, which included approximately
$2 million in estimated acquisition-related expenses. EVault provides data storage services for small to medium size
businesses, including online backup, data protection and recovery solutions.
The purchase price has been preliminarily allocated to the tangible and intangible assets acquired and liabilities
assumed based on their respective estimated fair values on the acquisition date as follows (in millions):
Tangible net assets were valued at their respective carrying amounts as the Company believes that these amounts
approximated their current fair values at the acquisition dates. The fair value of identifiable intangible assets acquired
reflects management’s estimates based on, among other factors, use of established valuation methods. Such assets
consist of existing technology, customer relationships and trade names. Identifiable intangible assets are amortized
over their estimated remaining useful lives. The Company assigned $4 million to the value of EVault’s in-process
research and development projects as at the acquisition date, all of which was written off in the period of acquisition.
Goodwill of approximately $122 million represents the excess of the purchase price over the fair value of the net
tangible and identifiable intangible assets acquired. The EVault acquisition did not have a material impact on the
Company’s results of operations.
The recorded values and estimated useful lives of the intangibles acquired from EVault were:
Other Acquisitions
In fiscal year 2006, the Company purchased two other companies for cash totaling $15 million and $14 million,
respectively, which resulted in residual values of approximately $12 million and $5 million, respectively, being
98
Fiscal Years Ended
June 30, 2006
July 1, 2005
(Unaudited)
(In millions,
except per share data)
Revenue
$
12,199
$
11,452
Net income
$
489
$
419
Basic net income per share
$
0.84
$
0.74
Diluted net income per share
$
0.80
$
0.70
Tangible assets acquired and liabilities assumed
$
19
Identifiable intangible assets
41
In
-
process research and development
4
Goodwill
122
Total purchase price
$
186
Estimated Fair
Weighted Average
Value
Useful Life
(In millions)
(In Years)
Existing technology
$
26
4.0
Customer relationships
12
4.1
Trade names
3
3.0
Total acquired identifiable intangible assets
$
41
4.0