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Business Combinations | 12 Months Ended
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Apr. 28, 2023
Business Combinations [Abstract] |
Business Combinations | 4. Business Combinations Fiscal 2023 Acquisition Instaclustr Acquisition On May 20, 2022, we acquired all the outstanding shares of privately-held Instaclustr US Holding, Inc. (Instaclustr) for approximately $498 million. Instaclustr is a leading platform provider of fully managed open-source database, pipeline and workflow applications delivered as-a-service. The acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions):
|  | Amount |
Cash |  | $ | 4 |
Intangible assets |  |  | 107 |
Goodwill |  |  | 413 |
Other assets |  |  | 19 |
Total assets acquired |  |  | 543 |
Liabilities assumed |  |  | (45 | )
Total purchase price |  | $ | 498 |
The components of the intangible assets acquired were as follows (in millions, except useful life):
|  | Amount |  |  | Estimated useful life (years) |
Developed technology |  | $ | 55 |  |  |  | 5 |
Customer contracts/relationships |  |  | 50 |  |  |  | 5 |
Trade name |  |  | 2 |  |  |  | 3 |
Total intangible assets |  | $ | 107 |  |  |  |
The acquired net assets and assumed debt of Instaclustr 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 revenue synergies and 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 its identifiable net assets acquired, and as a result, we have recorded goodwill in connection with the acquisition. The goodwill is not deductible for income tax purposes. The results of operations related to the acquisition of Instaclustr have been included in our consolidated statements of income from the acquisition date. Pro forma results of operations have not been presented because the impact from the acquisition was not material to our consolidated results of operations. 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 was paid in the fourth quarter of fiscal 2023. 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 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. (Data Mechanics), 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 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 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 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 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.

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