Acquisition of Versature Corp

6 Months Ended

Jan. 31, 2019

Acquisition of Versature Corp [Abstract]

Note 5—Acquisition of Versature Corp.

On September 14, 2018, the Company acquired 100% of the outstanding shares of Versature Corp., a software as a service (“SaaS”) business communications solutions and hosted voice over Internet Protocol (“VoIP”) provider serving the Canadian market, for cash of $5.9 million. The acquisition expands the Company’s UCaaS business into Canada. Versature’s operating results from the date of acquisition, which were not significant, are included in the Company’s consolidated financial statements.

The impact of the acquisition’s purchase price allocations on the Company’s consolidated balance sheet and the acquisition date fair value of the total consideration transferred were as follows (in thousands):

Trade accounts receivable	$	370
Prepaid expenses		65
Property, plant and equipment		1,826
Non-compete agreement		600
Customer relationships		2,930
Tradename		490
Other assets		486
Trade accounts payable		(81	)
Accrued expenses		(523	)
Other liabilities		(710	)
Net assets excluding cash acquired	$	5,453

Supplemental information:
Cash paid	$	5,870
Cash acquired		(417	)
Total consideration, net of cash acquired	$	5,453

The following table presents unaudited pro forma information of the Company as if the acquisition occurred on August 1, 2017:

	Three Months Ended January 31,				Six Months Ended January 31,
	2019		2018		2019			2018
	(in thousands)
Revenues	$	349,473	$	397,362	$	712,673		$	792,284

Net income (loss)	$	489	$	1,641	$	(867	)	$	(319	)