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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
3. Acquisitions
Xyratex Ltd
On March 31, 2014, the Company acquired all of the outstanding shares of Xyratex Ltd ("Xyratex"), a leading provider of data storage
technology. The Company paid $13.25 per share, or approximately $376 million in cash for the acquisition. The acquisition of Xyratex further
strengthens the Company's vertically integrated supply and manufacturing chain for disk drives and provides access to important capital
requirements, as well as expands the Company's storage solutions portfolio.
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:
The accounts receivables of $67 million are net of an immaterial allowance at March 31, 2014.
The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which
each intangible asset will be amortized:
The goodwill recognized is primarily attributable to the synergies expected to arise after the acquisition, and is not deductible for income
tax purposes.
The Company incurred a total of $10 million of expenses related to the acquisition of Xyratex in fiscal year 2014, which are included within
Marketing and administrative expense on the Consolidated Statement of Operations.
The amounts of revenue and earnings of Xyratex included in the Company's Consolidated Statement of Operations from the acquisition
date are not significant.
76
(Dollars in millions)
Amount
Cash and cash equivalents
$
91
Accounts receivable, net
67
Inventories
111
Other current and non
-
current assets
28
Property, plant and equipment
55
Intangible assets
80
Goodwill
60
1
1
1
1
Total assets
492
1
1
1
1
Accounts payable and accrued expenses
(116
)
1
1
1
1
Total liabilities
(116
)
Total
$
376
1
1
1
1
1
1
1
1
(Dollars in millions)
Fair Value
Weighted
-
Average
Amortization
Period
Existing technology
$
23
5.5 years
Customer relationships
18
3.9 years
1
1
1
1
1
Total amortizable intangible assets acquired
41
4.8 years
In
-
process research and development
39
Total acquired identifiable intangible assets
$
80
1
1
1
1
1
1
1
1
1
1