Business Combinations (Tables)

6 Months Ended

Jun. 30, 2015

A summary of the purchase price is as follows (in thousands):


Cash paid at closing	$	81,379
Cash held in escrow		6,750

Total consideration paid	$	88,129

Summary of Preliminary Fair Value of Assets Acquired and Liabilities Assumed

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


Cash	$	54
Accounts receivable, net		3,245
Prepaid assets		746
Property and equipment		200
Deferred tax assets		2,586
Goodwill		42,076
Intangible assets		47,200
Accounts payable and accrued liabilities		(1,886	)
Deferred revenue		(6,092	)

Preliminary net assets acquired	$	88,129

Components of Identifiable Intangible Assets and Estimated Useful Lives

The following table sets forth the preliminary components of identifiable intangible assets and their estimated useful lives as of the acquisition date (in thousands):


	Preliminary fair value		Useful life
Customer relationships	$	42,600		13 years
Developed technology		3,700		5 years
Trade names		900		6 years

Total preliminary intangible assets subject to amortization	$	47,200

Summary of Unaudited Proforma Financial Information

The amounts of revenue and operating income (loss) of HLS included in the Company’s condensed consolidated statement of income from the date of acquisition of March 16, 2015 to the period ending June 30, 2015 are as follows (in thousands):


Total revenues	$	2,606

Operating loss	$	(1,170	)

The following unaudited pro forma financial information summarizes the combined results of operations of the Company and HLS, which was significant for purposes of the unaudited pro forma financial information disclosure, as though the companies were combined as of January 1, 2014 (in thousands, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Total revenues	$	54,604	$	45,086	$	106,213	$	85,337

Net income	$	2,909	$	1,649	$	6,840	$	2,463

Basic earnings per share	$	0.10	$	0.06	$	0.24	$	0.09

Diluted earnings per share	$	0.10	$	0.06	$	0.24	$	0.09

Changes in the Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2015 are as follows (in thousands):


	Workforce		Patient Experience		Provider		Total
Balance at January 1, 2015	$	12,336	$	24,154	$	5,424	$	41,914
Acquisition of HLS		—		—		42,076		42,076

Balance at June 30, 2015	$	12,336	$	24,154	$	47,500	$	83,990