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Business Combinations
9 Months Ended
Sep. 30, 2017
Business Combinations [Abstract]  
Business Combinations
Business Combinations

Acquisition-related costs during the nine months ended September 30, 2017 were $5.4 million and are included in general and administrative expense in the consolidated statements of income. Pro forma results of operations for the acquisition completed during the nine months ended September 30, 2017 have not been presented because the effects of the acquisition were not material to the Company's consolidated financial results. Revenue and earnings of the acquired company since the date of the acquisition that are included in the Company's consolidated statements of income are also not presented separately because they are not material.

Soasta

In April 2017, the Company acquired Soasta, Inc. ("Soasta"), a leader in digital performance management, for $199.3 million in cash. The allocation of the purchase price has not been finalized as of the filing of these financial statements. The acquisition is expected to allow the Company to offer solutions designed to provide greater visibility into the business impact of customers' website and application optimization strategies.

The following table presents the preliminary allocation of the purchase price for Soasta (in thousands):

Total purchase consideration
 
$
199,280

 
 
 
Allocation of the purchase consideration:
 
 
Cash
 
$
1,935

Accounts receivable
 
4,108

Prepaids and other current assets
 
1,143

Identifiable intangible assets
 
49,900

Goodwill
 
121,669

Deferred tax assets
 
35,121

Total assets acquired
 
213,876

Accounts payable
 
(1,119
)
Accrued liabilities
 
(3,915
)
Deferred revenue
 
(9,562
)
Total liabilities assumed
 
(14,596
)
Net assets acquired
 
$
199,280



The value of the goodwill can be attributed to a number of business factors, including a trained technical and sales workforce and cost synergies expected to be realized. The total amount of goodwill related to the acquisition of Soasta expected to be deductible for tax purposes is $31.6 million.

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):

 
Gross Carrying Amount
 
Weighted Average Useful Life (in years)
Completed technologies
$
18,800

 
4.1
Customer-related intangible assets
28,200

 
4.6
Trademarks
2,400

 
4.9
Non-compete agreements
500

 
1.9
Total
$
49,900

 
 


The total weighted average amortization period for the intangible assets acquired from Soasta is 4.4 years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized.

Nominum

In October 2017, the Company agreed to acquire Nominum, Inc. ("Nominum"), a provider of domain name system ("DNS") and enterprise security solutions. The acquisition is expected to close in the fourth quarter of 2017 and is intended to add complementary capabilities to the Company's portfolio of security offerings while expanding the Company’s distribution to carriers that serve enterprise customers.