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Acquisition Of DigiNotar
 6 Months Ended
Jun. 30, 2011
Acquisition Of DigiNotar  
Acquisition Of DigiNotar

Note 4 – Acquisition of DigiNotar

As previously disclosed, on January 10, 2011, we purchased all of the intellectual property of DigiNotar Holding B.V. and its subsidiaries and acquired 100% of the stock of DigiNotar B.V. and DigiNotar Notariaat B.V., each a private company organized and existing in The Netherlands (collectively, "DigiNotar"), for aggregate consideration of € 10,000 (approximately $13,253 at an exchange rate of 1.32 US Dollars per Euro) comprised of assumed debt of € 64 and cash. Both transactions were effective January 1, 2011. We funded the transactions from our existing cash balances.

The consideration has been allocated to assets acquired and liabilities assumed based on their respective fair values as of the acquisition date as follows:

 

Current assets

    $ 2,039   

Property and equipment

      589   

Goodwill

      2,632   

Intangible assets

      10,139   

Deferred income tax liabilities – current

      (414 ) 

Other current liabilities

      (1,217 ) 

Deferred income tax liabilities – non-current

      (515 ) 
  

 

 

  
   $ 13,253   
  

 

 

  

Acquired identifiable intangible assets totaling $10,139 are being amortized over their respective useful lives ranging from two to seven years and are further described in Note 7.

Purchase consideration includes contingent consideration held in escrow payable upon the achievement of certain one year operating targets. The contingent consideration has been recorded as a current asset at its estimated fair value of $861 and will be re-measured quarterly with changes in fair value recorded in our statements of operations. The change in fair value for the three and six months ended June 30, 2011 was not significant.

The acquisition is not material to our unaudited condensed consolidated balance sheet and results of operations. The unaudited condensed financial statements include the operating results of DigiNotar from the acquisition date.