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ACQUISITIONS: | 6 Months Ended
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Sep. 30, 2019
Business Combinations [Abstract] |
ACQUISITIONS: | ACQUISITIONS: Data Plus Math On July 2, 2019, the Company closed its merger with Data Plus Math Corporation ("DPM"), a media measurement company that works with brands, agencies, cable operators, streaming TV services and networks to tie cross-screen ad exposure with real-world outcomes. The Company has included the financial results of DPM in the condensed consolidated financial statements from the acquisition date. The acquisition date fair value of the consideration transferred for DPM was approximately $118.0 million, which consisted of the following (dollars in thousands):
Cash, net of $0.4 million cash acquired |  | $ | 100,886 |
Restricted cash held in escrow |  | 14,815 |
Fair value of replacement stock options considered a component of purchase price |  | 2,300 |
Total fair value of consideration transferred |  | $ | 118,001 |
On the acquisition date, the Company delivered $14.8 million of cash to an escrow agent according to the terms of the purchase agreement. The principal escrow amount is owned by the Company until funds are delivered to the DPM sellers six months from the acquisition date. All interest and earnings on the principal escrow amount remain the property of the Company. The total fair value of the replacement stock options issued was $7.4 million of which $2.3 million was allocated to the purchase consideration and $5.1 million was allocated to future services and will be expensed over the future requisite service periods (see Note 7). In connection with the DPM acquisition, the Company agreed to pay $24.7 million to certain key employees (see "Consideration Holdback" in Note 7). The consideration holdback is payable in 3 equal, annual increments, based on the anniversary dates of the acquisition, and is payable in shares of Company common stock. The number of shares to be issued annually will vary depending on the market price of the shares on the date of issuance. The consideration holdback is not part of the purchase price, as vesting is dependent on continued employment of the key employees. It will be recorded as non-cash stock-based compensation expense over the three-year earning period. The following table summarizes the preliminary estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (dollars in thousands):
|  | July 2, 2019
Assets acquired: |  |
Cash |  |  | $ | 438 |
Trade accounts receivable |  |  | 957 |
Goodwill |  |  | 89,942 |
Intangible assets (Other assets) |  |  | 35,000 |
Other current and noncurrent assets |  |  | 1,186 |
Total assets acquired |  |  | 127,523 |
Deferred income taxes |  |  | (6,357) |
Accounts payable and accrued expenses |  |  | (2,727) |
Net assets acquired |  |  | 118,439 |
Less: |  |  |  |
Cash acquired |  |  | (438) |
Net purchase price allocated |  |  | 118,001
Less: |  |
Fair value of replacement stock options considered a component of purchase price |  | (2,300) |
Net cash paid in acquisition |  | $ | 115,701 |
The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill balance is not deductible for U.S. income tax purposes. The Company initially recognized the assets and liabilities acquired based on its preliminary estimates of their fair values as of the acquisition date. As additional information becomes known concerning the acquired assets and assumed liabilities, management may make adjustments to the opening balance sheet of the acquired company up to the end of the measurement period, which is not longer than a one-year period following the acquisition date. The determination of the fair values of the acquired assets and liabilities assumed (and the related determination of the estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. As of September 30, 2019, the Company has not completed its fair value analysis and calculation in sufficient detail necessary to arrive at the final estimate of the fair value. The fair values currently assigned to tangible and identifiable intangible assets acquired and liabilities assumed were based on the information that was available as of the date of the acquisition. The Company expects to finalize the valuation as soon as practical. The amounts allocated to intangible assets in the table above included developed technology, data supply relationships, customer relationships, and trademarks. Intangible assets will be amortized on a straight-line basis over the estimated useful lives. The following table presents the components of intangible assets acquired and their estimated useful lives as of the acquisition date (dollars in thousands):
|  |  |  | Useful life
|  | Fair value |  | (in years)
Developed technology |  | $ | 23,000 |  |  | 4
Data supply relationships |  | 7,000 |  |  | 4
Customer relationships |  | 4,000 |  |  | 4
Trademarks |  | 1,000 |  |  | 2
Total intangible assets |  | $ | 35,000 |  |  |
The Company has omitted disclosures of revenue and net loss of the acquired company from the acquisition date to September 30, 2019 as the amounts are not material. The pro forma financial information in the table below summarizes the combined results of operations for LiveRamp and DPM for the purposes of pro forma financial information disclosures as if the companies were combined as of the beginning of fiscal 2019. The pro forma financial information for all periods presented included the business combination accounting effects resulting from these acquisitions, including amortization charges from acquired intangible assets (certain of which are preliminary), stock-based compensation charges for unvested restricted stock-based awards and stock options assumed, if any, and the related tax effects as though the aforementioned companies were combined as of the beginning of fiscal 2019. The pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions had taken place at the beginning of fiscal 2019. The pro forma financial information for the three months ended September 30, 2018 combined the historical results of LiveRamp for the three months ended September 30, 2018 and the historical results of DPM for the three months ended June 30, 2018 (adjusted due to differences in reporting periods) and the effects of the pro forma adjustments listed above. The pro forma financial information for the three months and six months ended September 30, 2019 and 2018, respectively, combined the historical results of LiveRamp for the three and six months ended September 30, 2019 and 2018, and the historical results of DPM for the three months ended March 31, 2019 and the six months ended June 30, 2018 (adjusted due to differences in reporting periods) and the effects of the pro forma adjustments listed above. The pro forma financial information was as follows (dollars in thousands, except per share data):
|  |  |  | For the three months ended |  | For the six months ended |  |
|  |  |  | September 30, |  | September 30, |  |
|  |  |  | 2018 |  | 2019 |  | 2018
Revenues |  |  |  | $ | 65,201 |  |  | $ | 173,583 |  |  | $ | 127,792 |
Net earnings (loss) |  |  |  | $ | 14,168 |  |  | $ | (88,217) |  |  | $ | 5,365 |
Basic earnings (loss) per share |  |  |  | $ | 0.18 |  |  | $ | (1.29) |  |  | $ | 0.07 |
Diluted earnings (loss) per share |  |  |  | $ | 0.18 |  |  | $ | (1.29) |  |  | $ | 0.07 |
Faktor On April 2, 2019, the Company acquired all of the outstanding shares of Faktor B. V. ("Faktor"). Faktor is a global consent management platform that allows consumers to control how their data is collected, used, and transferred for usage to another party. Faktor's platform provides individuals with notice and choice on websites and mobile apps and allows them to opt-in or opt-out via a visible banner of the page. The Company paid approximately $4.5 million in cash for the acquired shares. The Company has omitted pro forma disclosures related to this acquisition as the pro forma effect of this acquisition is not material. The results of operations for the acquisition are included in the Company's condensed consolidated results beginning April 2, 2019. The following table presents the purchase price allocation related to assets acquired and liabilities assumed (dollars in thousands):
|  | April 2, 2019
Assets acquired: |  |
Cash |  | $ | 35 |
Trade accounts receivable |  | 63 |
Goodwill |  | 3,110 |
Intangible assets (Other assets) |  | 1,700 |
Other current and noncurrent assets |  | 126 |
Total assets acquired |  | 5,034 |
Deferred income taxes |  | (194) |
Accounts payable and accrued expenses |  | (326) |
Net assets acquired |  | 4,514 |
Less: |  |
Cash acquired |  | (35) |
Net cash paid |  | $ | 4,479 |
The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed were based on preliminary calculations and valuations using management's estimates and assumptions and were based on the information that was available as of the date of acquisition. The Company expects to finalize the valuation as soon as practical.

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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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