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Acquisitions (Consideration Transferred) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 31, 2012
Purchase price components  
Fair value of shares of stock issued $ 31,572
Zerigo
 
Purchase price components  
Cash 750
Contingent payments 441
Fair value of shares of stock issued 750
Total purchase price 1,941
Business Acquisition, Name of Acquired Entity Zerigo, Inc.
Business Acquisition, Description of Acquired Entity

On June 16, 2011, the Company entered into an agreement with Zerigo, Inc. ("Zerigo"), a provider of cloud services pursuant to which the Company acquired 100% of the outstanding stock of Zerigo from its sole shareholder. Under the terms of the agreement, the Company paid the selling shareholder $750,000 in cash and issued 207,756 shares of its common stock. In addition, the Company agreed to pay the selling shareholder an earn-out of up to $500,000 cash upon the achievement of specified software development milestones by December 31, 2011. As of December 31, 2011, the shareholder had achieved the specified software development milestones and the earn-out of $500,000 had been paid to the shareholder.

 

 

Business Combination, Assets and Liabilities, Description

The Company recorded the acquired tangible and identifiable intangible assets and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the aggregate fair values of the assets acquired and liabilities assumed is recorded as goodwill. The amount of goodwill recognized is primarily attributable to the operating synergies expected to be realized through the acquisition of Zerigo and the workforce of the acquired business. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management. Intangible assets will be amortized on a straight-line basis.

The estimated fair values of the assets acquired and liabilities assumed are as follows (in thousands):

            Estimated
            Fair Value
Assets acquired:            
     Cash         $ 35 
     Property and equipment, net           25 
     Intangible assets           1,046 
          Total assets acquired           1,106 
Liabilities assumed            
     Accounts payable           (8)
     Deferred income tax liability, non-current           (413)
          Total liabilities assumed           (421)
               Net identifiable assets acquired           685 
     Goodwill           1,256 
               Total purchase price         $ 1,941 

 

 

Contactual
 
Purchase price components  
Cash 892
Fair value of shares of stock issued 30,608
Fair value of options 274
Total purchase price $ 31,774
Business Acquisition, Name of Acquired Entity Contactual, Inc.
Business Acquisition, Description of Acquired Entity

On September 15, 2011, the Company acquired 100% of the outstanding shares of capital stock of Contactual, Inc. ("Contactual"), a provider of cloud-based call center and customer interaction management solutions, pursuant to the terms of a merger agreement between the Company and Contactual. The Company issued a total of 6,484,900 shares of common stock as acquisition consideration. This figure reflects a 215,100 share reduction related to 8x8's agreement to pay statutory tax withholding on behalf of five former Contactual executives under the terms of the merger agreement. Approximately 1,005,000 of the shares of common stock issued as acquisition consideration are being held in escrow as security for the indemnification obligations of the Contactual stockholders under the merger agreement.

 

 

Business Combination, Assets and Liabilities, Description

The Company recorded the acquisition of tangible and identifiable intangible assets and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the aggregate fair values of the assets acquired and liabilities assumed is recorded as goodwill. The amount of goodwill recognized is primarily attributable to the operating synergies expected to be realized through the acquisition of Contactual and the workforce of the acquired business. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management. Intangible assets will be amortized on a straight-line basis.

 

The estimated fair values of the assets acquired and liabilities assumed are as follows:

            Estimated
            Fair Value
Assets acquired:            
     Cash         $ 894 
     Restricted cash           28 
     Accounts receivable, net           572 
     Prepaids and other assets           265 
     Property and equipment, net           347 
     Intangible assets           11,150 
          Total assets acquired           13,256 
Liabilities assumed            
     Accounts payable           (2,059)
     Accrued compensation           (1,255)
     Deferred revenue           (253)
     Other accrued liabilities           (166)
          Total current liabilities           (3,733)
Deferred income tax liability, non-current           (301)
Accrued liabilities, non-current           (131)
          Total liabilities assumed           (4,165)
               Net identifiable assets acquired           9,091 
Goodwill           22,683 
          Total purchase price         $ 31,774