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Business Combination | 12 Months Ended
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Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract] |
Business Combinations |
4. | BUSINESS COMBINATION
Acquisition of Shenzhen Yunfan In March 2021, the Group completed the acquisition of 100% equity interest in Shenzhen Yunfan Acceleration Technology Co., Ltd. and its subsidiary (collectively, “Shenzhen Yunfan”). Shenzhen Yunfan is mainly engaged in providing content distribution, acceleration and other cloud-related IaaS and PaaS edge computing solutions, and the acquisition is expected to enhance the Group’s expertise in public cloud services. The results of Shenzhen Yunfan have been included in the Group’s consolidated financial statements since April 2021. The total cash purchase price consideration was RMB126,400 (US$19,835 ). The Group recognized RMB586 (US$92) of net assets acquired excluding intangible assets, RMB77,000 (US$12,083) of intangible assets which comprised of technology, trademark and domain name, and RMB48,814 (US$7,660) of goodwill resulted from the acquisition. Goodwill recognized represents the expected synergies from integrating Shenzhen Yunfan with the Group’s existing cloud business and is not deductible for tax purposes. Acquisition of Beijing Yunshu In April 2021, the Group completed the acquisition of 86.21% equity interest in Beijing Yunshu Xunlian Technology Co., Ltd. (“Beijing Yunshu”), which the Group expected to enhance the Group’s public cloud services. The total cash purchase price was RMB7,034 (US$1,104) contingent consideration. The results of Beijing Yunshu’s operations have been included in the Group’s consolidated financial statements since April 2021. Acquisition of Camelot In September 2021, the Group completed the acquisition of Camelot. Camelot is mainly engaged in enterprise digital solutions and enterprise digital services, and the acquisition is expected to further develop the Group’s enterprise cloud business. The results of Camelot have been included in the consolidated financial statements of the Group since September 2021. The total purchase consideration was RMB5,290,553 (US$830,203), which consisted of cash consideration of RMB751,974 (US$118,001) and equity consideration of RMB4,538,579 (US$712,202). Goodwill recognized represents the expected synergies from integrating Camelot with the Group’s existing enterprise cloud business and is not tax deductible. The table below summarize s the estimated fair values of the assets acquired and liabilities assumed from Camelot as of the acquisition date:
|  | Camelot |
|  | RMB |  |  | US$ |
Total fair value of purchase consideration |  |  | 5,290,553 |  |  |  | 830,203 |
Less: |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 618,439 |  |  |  | 97,047 |
Restricted cash |  |  | 1,126 |  |  |  | 177 |
Accounts receivable and other assets |  |  | 940,297 |  |  |  | 147,553 |
Property and equipment, net |  |  | 12,224 |  |  |  | 1,918 |
Intangible assets: |  |  |  |  |  |  |  |
Customer relationship |  |  | 620,100 |  |  |  | 97,307 |
Trademarks |  |  | 474,000 |  |  |  | 74,381 |
Copyrights |  |  | 34,100 |  |  |  | 5,351 |
Deferred tax assets |  |  | 59,060 |  |  |  | 9,268 |
Deferred tax liabilities |  |  | (268,490 | ) |  |  | (42,132 | )
Accounts payable and other liabilities |  |  | (878,885 | ) |  |  | (137,916 | )
Non-controlling interests |  |  | (882,451 | ) |  |  | (138,476 | )
Goodwill |  |  | 4,561,033 |  |  |  | 715,725 |
The purchase price allocation of Camelot is substantially complete with the exception of, primarily, certain tax matters. Any measurement period adjustments resulting from the finalization of the Group’s purchase price allocation are not expected to be material. The valuations used in the purchase price allocation for the acquisitions were determined by the Group with the assistance of independent third-party valuation firms using the income approach (a Level 3 measurement). Significant assumptions used in the valuation of intangible assets included projected revenue growth rates, operating margin, customer attrition rates, royalty rates and discount rate. Non-controlling interests at the acquisition date was measured by applying the equity percentage held by non-controlling shareholders and a discount for lack of control premium to the fair value of the acquired business of Camelot. The actual results of operation after the acquisition date and pro forma results of operations for the acquisitions have not been presented because the effects were not material.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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