Business Combinations

9 Months Ended

Sep. 30, 2019

Acquisition-related costs during the nine months ended September 30, 2019 were $1.2 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, 2019 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.

ChameleonX

In October 2019, the Company agreed to acquire ChameleonX Ltd., an Israel-based company with a solution designed to detect when a website contains or links to malware that causes end user data to be compromised, for approximately $15.0 million in cash. The acquisition is expected to further strengthen the Company's industry leading security portfolio. The acquisition is expected to close in the fourth quarter of 2019.

Exceda

In November 2019, the Company acquired Exceda, a leading provider of CDN and web security services, and the Company's largest channel partner in Latin America, for approximately $33.0 million in cash. The acquisition is expected to enable the Company to expand its Latin America business more quickly, better enable existing and new partners and improve experiences for more customers.

Janrain

In January 2019, the Company acquired Janrain, Inc. ("Janrain"), a provider of customer identity and access management solutions, for $123.6 million in cash. The allocation of the purchase price has not been finalized as of the date of the filing of these financial statements. The Company plans to incorporate the Janrain technology into Akamai's Intelligent Edge Platform.

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



Total purchase consideration	$	123,632

Allocation of the purchase consideration:
Cash	$	2,223
Accounts receivable	7,318
Prepaid expenses and other current assets	838
Identifiable intangible assets	26,930
Goodwill	99,685
Deferred tax assets	5,124
Other assets	87
Total assets acquired	142,205
Accounts payable	(1,641		)
Accrued expenses	(2,596		)
Deferred revenue	(14,336		)
Total liabilities assumed	(18,573		)
Net assets acquired	$	123,632

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 Janrain expected to be deductible for tax purposes is $42.5 million.

The following were the identifiable 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	$	9,000	3.0
Customer-related intangible assets	17,700		6.0
Trademarks	200		0.8
Non-compete agreements	30		1.0
Total	$	26,930

The total weighted average amortization period for the intangible assets acquired from Janrain is 5.0 years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized.