Seagate 2007 Annual Report Download - page 115

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
—
(
Continued)
The recorded values and estimated useful lives of the intangibles acquired from EVault were:
MetaLINCS, Inc.
Estimated Fair
Value
Weighted Average
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
In December 2007, the Company completed its acquisition of MetaLINCS, Inc. (“MetaLINCS”) in an all cash transaction valued at
approximately $74 million. MetaLINCS provides enterprise level E-
Discovery software that helps companies respond to litigation and regulatory
issues which requires them to search large volumes of electronic data for relevant information. The purpose of the acquisition was to expand on
the Company’s software and services offerings. The purchase price has been 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 date. The fair value of identifiable intangible assets acquired reflects management’s estimates based on,
among other factors, use of established valuation methods. Such assets include 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
MetaLINCS’ 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 $59 million represents the excess of the purchase price over the fair value of the net tangible and identifiable
intangible assets acquired. For fiscal year ended June 27, 2008, the effect of the MetaLINCS acquisition was not material to the Company’s
historical consolidated financial statements either individually or in aggregate, as such pro forma financial information has not been presented.
The recorded values and estimated useful lives of the intangibles acquired from MetaLINCS were:
114
Tangible assets acquired and liabilities assumed
$
(1
)
Identifiable intangible assets
12
In
-
process research and development
4
Goodwill
59
Total purchase price
$
74
Estimated Fair
Value
Weighted Average
Useful Life
(In millions)
(In years)
Existing technology
$
7
4.0
Customer relationships
3
4.0
Trade names
1
4.0
Other
1
2.0
Total acquired identifiable intangible assets
$
12
3.9