Acquisitions (Tables) - SiriusDecisions, Inc [Member]

3 Months Ended

Mar. 31, 2019

Summary of Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of the purchase price to the fair value of the assets acquired and liabilities assumed for the acquisition of SiriusDecisions (in thousands):

Assets:
Cash and cash equivalents	$	7,858
Accounts receivable		18,981
Prepaids and other current assets		3,786
Fixed assets		4,169
Goodwill (1)		157,808
Acquired intangible assets (2)		116,000
Other assets		265
Total assets		308,867
Liabilities:
Accounts payable and accrued liabilities		9,251
Deferred revenue		26,244
Deferred tax liability		24,460
Long-term deferred revenue		1,037
Other long-term liabilities		1,073
Total liabilities		62,065
Net assets acquired	$	246,802

(1)	Goodwill represents the expected revenue and cost synergies from combining SiriusDecisions with Forrester as well as the value of the acquired workforce.

(2)

All of the acquired intangible assets are finite-lived. The determination of the fair value of the finite-lived intangible assets required management judgment and the consideration of a number of factors. In determining the fair values, management primarily relied on income valuation methodologies, in particular discounted cash flow models. The use of discounted cash flow models required the use of estimates, including projected cash flows related to the particular asset; the useful lives of the particular assets; the selection of royalty and discount rates used in the models; and certain published industry benchmark data. In establishing the estimated useful lives of the acquired intangible assets, the Company relied primarily on the duration of the cash flows utilized in the valuation model. Of the $116.0 million assigned to acquired intangible assets, $14.0 million was assigned to the technology asset class with useful lives of 1 to 8 years (with a weighted average amortization period of 2.9 years), $13.0 million to backlog with a useful life of 2.0 years, $77.0 million to customer relationships with a useful life of 9.25 years, and $12.0 million to trade names with a useful life of 15.5 years. The weighted-average amortization period for the total acquired intangible assets is 8.3 years. Amortization of acquired intangible assets was $6.0 million for the three months ended March 31, 2019.

Schedule of Unaudited Pro Forma Financial Information

	Three Months Ended
	March 31,
	2019			2018
Pro forma total revenue	$	104,488		$	93,371
Pro forma net loss	$	(9,090	)	$	(10,451	)