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Acquisition Of Alfa & Ariss
 6 Months Ended
Jun. 30, 2011
Acquisition Of Alfa & Ariss  
Acquisition Of Alfa & Ariss

Note 5 – Acquisition of Alfa & Ariss

On April 1, 2011, we acquired all of the stock of Alfa & Ariss B.V. (Alfa & Ariss), an open identity and access management specialist of Enschede, The Netherlands, in exchange for cash consideration of € 1,000 (approximately $1,410 at the exchange rate of 1.41 US Dollars per Euro). The purchase price was subject to verification of certain balances resulting in an additional payment of € 36 in May 2011 (approximately $51 at an exchange rate of 1.41 US Dollars per Euro). The acquisition was funded by our existing cash balances.

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

 

Prepaid compensation – current

    $ 141   

Other current assets

      343   

Prepaid compensation – non-current

      423   

Property and equipment

      64   

Goodwill

      468   

Intangible assets

      606   

Deferred income tax liabilities – current

      (68 ) 

Other current liabilities

      (292 ) 

Deferred income tax liabilities – non-current

      (224 ) 
  

 

 

  
   $ 1,461   
  

 

 

  

Consideration includes contingent consideration of € 400 held in escrow payable ratably over four years on the anniversary date of the transaction subject to continued employment of a former officer and shareholder of Alfa & Ariss. The amount has been recorded as a prepaid expense and will be amortized ratably over the four year period.

Acquired identifiable intangible assets totaling $606 are being amortized over their respective useful lives ranging from two to five years and are further described in Note 7.

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 Alfa & Ariss from the acquisition date.