Business Combinations

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Note 2. Business Combinations

On January 27, 2021, the Company acquired 100% ownership of Apstra, Inc. ("Apstra"), a company that provides intent-based networking, open programmability and automated closed loop assurance for the management of data center networks. The purchase consideration was $179.4 million, consisting of $176.7 million in cash and $2.7 million in share-based awards attributable to services prior to the acquisition. The acquisition is expected to expand upon the Company's data center networking portfolio to advance its vision to transform data center operations.

The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed at the acquisition date (in millions):


	Amount
Cash and cash equivalents	$	1.8
Goodwill	84.0
Intangible assets	87.8
Other assets acquired	12.6
Liabilities assumed	(6.8)
Total	$	179.4

The goodwill recognized in connection with the acquisition is primarily attributable to anticipated synergies from future growth and will not be deductible for income tax purposes.

The following table summarizes the fair value of the separately identifiable intangible assets at the time of acquisition (in millions):


	Amount
Intangible assets(*):
Developed technology	$	80.5
Customer relationships	7.3

Total intangible assets acquired	$	87.8

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(*) Estimated useful life assigned to Developed Technology and Customer Relationships is 5 and 1.5 years, respectively.

Acquisition-related costs were not material during the nine months ended September 30, 2021, and were expensed in the period incurred within general and administrative expense in the Company's Condensed Consolidated Statements of Operations.

The Company's Condensed Consolidated Financial Statements include the operating results of this business combination from the date of acquisition. Pro forma results of operations for this acquisition have not been presented, as the financial impact to the Company's consolidated results of operations is not material. The preliminary purchase price allocation is subject to potential measurement period adjustments relating to certain tax and legal matters.