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Business Combinations
12 Months Ended
Apr. 29, 2022
Business Combinations [Abstract]  
Business Combinations

4. Business Combinations

 

Fiscal 2022 Acquisitions

 

Fylamynt Acquisition

On February 18, 2022, we acquired all the outstanding shares of privately-held NeurOps Inc. (which operated under the name "Fylamynt") for approximately $27 million in cash, of which $22 million was paid at closing. The purchase price includes $5 million related to an indemnity holdback provision, of which $4 million is expected to be paid within 12 months from the acquisition date. Fylamynt is an innovative CloudOps automation technology company that enables customers to build, run, manage and analyze workflows securely in any cloud with little to no code.

The preliminary acquisition-date values of the assets acquired are as follows (in millions):

 

 

Amount

 

Cash

 

$

1

 

Developed technology

 

 

6

 

Goodwill

 

 

20

 

Total assets acquired

 

 

27

 

Total purchase price

 

$

27

 

CloudCheckr Acquisition

 

On November 5, 2021, we acquired all the outstanding shares of privately-held CloudCheckr Inc., (CloudCheckr) for approximately $347 million in cash. CloudCheckr is a leading cloud optimization platform that provides cloud visibility and insights to lower costs, maintain security and compliance, and optimize cloud resources.

 

The acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions):

 

 

Amount

 

Cash

 

$

2

 

Intangible assets

 

 

76

 

Goodwill

 

 

276

 

Other assets

 

 

6

 

Total assets acquired

 

 

360

 

Liabilities assumed

 

 

(13

)

Total purchase price

 

$

347

 

 

The components of the intangible assets acquired were as follows (in millions, except useful life):

 

 

Amount

 

 

Estimated useful life
(years)

 

Developed technology

 

$

45

 

 

 

5

 

Customer contracts/relationships

 

 

30

 

 

 

5

 

Trade name

 

 

1

 

 

 

3

 

Total intangible assets

 

$

76

 

 

 

 

Data Mechanics Acquisition

On June 18, 2021, we acquired all the outstanding shares of privately-held Data Mechanics Inc., a provider of managed platforms for big data processing and cloud analytics headquartered in Paris, France, for approximately $15 million in cash.

The acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions):

 

 

Amount

 

Cash

 

$

1

 

Developed technology

 

 

5

 

Goodwill

 

 

11

 

Total assets acquired

 

 

17

 

Liabilities assumed

 

 

(2

)

Total purchase price

 

$

15

 

The acquired assets and assumed liabilities of Fylamynt, CloudCheckr and Data Mechanics were recorded at their estimated values. We determined the estimated values with the assistance of valuations and appraisals performed by third party specialists and estimates made by management. We expect to realize incremental revenue by offering continuous cost optimization and managed services from our existing capabilities to help customers improve their cloud resources and realize the benefits of cloud faster and at scale. We also anticipate opportunities for growth through the ability to leverage additional future products and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated fair value of their identifiable net assets acquired, and as a result, we have recorded goodwill in connection with these acquisitions. The goodwill is not deductible for income tax purposes.

The results of operations related to the acquisitions of Fylamynt, CloudCheckr and Data Mechanics have been included in our consolidated statements of income from their respective acquisition dates. Pro forma results of operations have not been presented because the impact from these acquisitions was not material to our consolidated results of operations.

Fiscal 2021 Acquisitions

Spot, Inc. Acquisition

On July 9, 2020, we acquired all the outstanding shares of privately-held Spot, Inc. (Spot), a provider of compute management cost optimization services on the public clouds based in Israel, for $340 million in cash.

The acquisition date fair values of the assets acquired and liabilities assumed are as follows (in millions):

 

 

Amount

 

Cash

 

$

24

 

Intangible assets

 

 

84

 

Goodwill

 

 

249

 

Other assets

 

 

6

 

Total assets acquired

 

 

363

 

Liabilities assumed

 

 

(23

)

Total purchase price

 

$

340

 

The components of the Spot intangible assets acquired were as follows (in millions, except useful life):

 

 

Amount

 

 

Estimated useful life
(years)

 

Developed technology

 

$

53

 

 

 

5

 

Customer contracts/relationships

 

 

28

 

 

 

5

 

Trade name

 

 

3

 

 

 

3

 

Total intangible assets

 

$

84

 

 

 

 

Cloud Jumper Corporation Acquisition

On April 28, 2020, we acquired all the outstanding shares of privately-held Cloud Jumper Corporation (Cloud Jumper), a provider of virtual desktop infrastructure and remote desktop services solutions based in North Carolina, for $34 million in cash.

The acquisition date fair values of the assets acquired and liabilities assumed are as follows (in millions):

 

 

Amount

 

Developed technology

 

$

16

 

Customer contracts/relationships

 

 

6

 

Goodwill

 

 

12

 

Other assets

 

 

1

 

Total assets acquired

 

 

35

 

Liabilities assumed

 

 

(1

)

Total purchase price

 

$

34

 

 

The acquired assets and assumed liabilities of Spot and Cloud Jumper were recorded at their estimated fair values. We determined the estimated fair values with the assistance of valuations and appraisals performed by third party specialists and estimates made by management. We expect to realize revenue synergies, leverage and expand the existing Spot and Cloud Jumper sales channels and product development resources, and utilize their existing workforces. We also anticipate opportunities for growth through the ability to leverage additional future products and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated fair value of their identifiable net assets acquired, and as a result, we have recorded goodwill in connection with both of these acquisitions. The goodwill is not deductible for income tax purposes.

The results of operations related to the acquisition of both Spot and Cloud Jumper have been included in our consolidated statements of income from their respective acquisition dates. Pro forma results of operations have not been presented because the impact from these acquisitions would not have been material to our consolidated results of operations.

Fiscal 2020 Acquisitions

Talon Storage Solutions, Inc. Acquisition

On March 6, 2020, we acquired all the outstanding shares of privately-held Talon Storage Solutions, Inc., a provider of next generation software-defined storage solutions, for $23 million in cash.

 

The acquisition date fair values of the assets acquired and liabilities assumed are as follows (in millions):

 

 

 

Amount

 

Cash

 

$

2

 

Developed technology intangible asset

 

 

6

 

Customer contracts/relationships

 

 

4

 

Other assets

 

 

4

 

Goodwill

 

 

13

 

Total assets acquired

 

 

29

 

Liabilities assumed

 

 

(6

)

Total purchase price

 

$

23

 

Cognigo Research Ltd. Acquisition

On May 23, 2019, we acquired all the outstanding shares of privately-held Cognigo Research Ltd., a provider of data discovery classification software designed to manage and protect critical data, for $53 million in cash.

 

The acquisition date fair values of the assets acquired and liabilities assumed are as follows (in millions):

 

 

 

Amount

 

Cash

 

$

2

 

Developed technology intangible asset

 

 

26

 

Goodwill

 

 

30

 

Total assets acquired

 

 

58

 

Liabilities assumed

 

 

(5

)

Total purchase price

 

$

53