Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Mission Mode

Summary of Allocation of Purchase Consideration and Estimated Values of Assets Acquired and Liabilities Assumed

The following table summarizes the allocation of the purchase consideration and the estimated fair value of the assets acquired and the liabilities assumed as well as the aggregate consideration during the three months ended June 30, 2019 for the acquisition of Mission Mode made by the Company (in thousands):

	Mission Mode
Assets acquired
Accounts receivable	$	295
Other assets		7
Property and equipment		6
Trade names		220
Acquired technology		310
Customer relationships		4,600
Goodwill		2,918
Total assets acquired		8,356
Liabilities assumed
Accounts payable and accrued expenses		152
Deferred revenue		880
Other liabilities		10
Net assets acquired	$	7,314
Consideration paid
Cash paid, net of cash acquired	$	6,764
Contingent consideration		550
Total	$	7,314

NC4 Inc. and NC4 Public Sector LLC

Summary of Allocation of Purchase Consideration and Estimated Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary estimated fair value of the assets acquired and the liabilities assumed as well as the aggregate consideration during the three months ended September 30, 2019 for the acquisition of NC4 made by the Company (in thousands):

	NC4
Assets acquired
Accounts receivable	$	2,611
Other current assets		530
Property and equipment		75
Acquired technology		5,210
Trade names		8,610
Customer relationships		35,490
Goodwill		40,424
Total assets acquired		92,950
Liabilities assumed
Deferred revenue		7,540
Other current liabilities		917
Net assets acquired	$	84,493
Consideration paid
Cash paid	$	51,655
Fair value of common stock issued		32,838
Total	$	84,493

Summary of Unaudited Pro Forma Results of Operations

The following tables reflect the results of acquired business included in our unaudited financial information for the three months ended September 30, 2019 as well as the unaudited pro forma combined results of operations for the three and nine months ended September 30, 2019 and the three and nine months ended September 30, 2018 as if the acquisition of NC4 had taken place on January 1, 2018. The unaudited pro forma financial information includes the effects of certain adjustments, including the amortization of acquired intangible assets and the associated tax effect and the elimination of the Company’s and the acquiree’s non-recurring acquisition related expenses (in thousands, except per share amounts):

	Revenue		Net loss
From the acquisition date to September 30, 2019	$	2,040	$	(1,465	)
For the three months ended September 30, 2019 pro forma		54,352		(13,387	)
For the nine months ended September 30, 2019 pro forma		154,719		(45,875	)
For the three months ended September 30, 2018 pro forma		43,037		(11,543	)
For the nine months ended September 30, 2018 pro forma		116,838		(48,652	)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Basic and diluted loss per share pro forma	$	(0.40	)	$	(0.39	)	$	(1.38	)	$	(1.66	)