v3.5.0.1
Business Combinations
 12 Months Ended
Apr. 30, 2016
Business Combinations [Abstract]  
Business Combinations
Business Combinations
Fiscal Year 2014
FeedMagnet
On April 15, 2014, the Company acquired FeedMagnet Inc. (“FeedMagnet”), a privately-owned social media curation company, for $9.3 million in cash. The Company accounted for the FeedMagnet acquisition using the acquisition method of accounting.
The Company allocated the purchase price to the assets acquired, including intangible assets, and liabilities assumed based on estimated fair values at the date of the acquisition. The Company estimated the value of tangible assets and liabilities based on purchase price and future intended use. The Company derived the value of intangible assets from the present value of estimated future benefits from the various intangible assets acquired.
The Company allocated the purchase price for FeedMagnet as follows (in thousands):
 
 
 
Cash and cash equivalents
$
383

Accounts receivable
695

Prepaid expenses and other current assets
19

Intangible assets:
 
Developed technology (3 year useful life)
3,265

Customer relationships (3 to 10 year useful life)
535

Total identified intangibles
3,800

Goodwill
6,324

Total assets acquired
$
11,221

Accounts payable
(80
)
Accrued expenses and other current liabilities
(187
)
Deferred revenue
(234
)
Deferred tax liability
(1,391
)
Total liabilities assumed
$
(1,892
)
Net assets acquired
$
9,329

The consideration paid was as follows (in thousands):
 
 
Cash
$
9,329

Total consideration
$
9,329


Goodwill represents the excess of the purchase price over the aggregate fair value of the net identifiable assets acquired and is not deductible for tax purposes. Goodwill for FeedMagnet resulted primarily from the Company’s expectations that FeedMagnet’s solutions will enhance the Company’s product offerings. The Company integrated the FeedMagnet business into the Company’s operations; therefore, there are no separate revenue and earnings for FeedMagnet since the integration.
The Company did not have any liabilities related to contingent consideration as of April 30, 2016 or April 30, 2015.