Business Combination Business Combination

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Business Combination

Business Combination

On August 29, 2017, the Company acquired certain assets of Nevis Networks (India) Private Limited (“Nevis”), a company developing network security solutions for detection and awareness of external intrusions to computer networks. The Company acquired the assets of Nevis to provide additional solutions on the Company's cloud platform. The consideration for this acquisition consisted of $5.8 million in cash. The Company accounted for this transaction as a business combination and allocated $5.2 million of the purchase price to technology-based intangible assets and $0.6 million to goodwill. The intangible asset has an estimated useful life of 5 years. Goodwill is deductible for tax purposes over 15 years.

Additional information that existed as of the acquisition date but at that time was unknown to the Company may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the period in which the acquisition occurred.