Acquisitions (Tables)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Summary of Assumptions Used for Estimating Fair Value of Stock Options

The following table summarizes the assumptions used for estimating the fair value of stock options assumed from the Connect business unit of Icontrol:

	Nine Months Ended September 30, 2017
Volatility	42.7 - 44.4%
Expected term	2.5 - 5.0 years
Risk-free interest rate	1.4 - 2.0%
Dividend rate	—	%

Schedule of Consideration Paid and Estimated Fair Value of Tangible and Intangible Net Assets Acquired

The table below sets forth the purchase consideration and the fair value allocation of the tangible and intangible net assets acquired (in thousands):

	March 8, 2017
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment	$	148,500
Assumed stock options	1,375
Total consideration	$	149,875
Estimated Tangible and Intangible Net Assets:
Cash	$	211
Accounts receivable	11,421
Current assets	883
Long-term assets	4,446
Customer relationships	93,260
Developed technology	4,770
Trade name	170
Current liabilities	(1,608		)
Long-term liabilities	(288		)
Goodwill	36,610
Total estimated tangible and intangible net assets	$	149,875

The table below sets forth the purchase consideration and the fair value allocation of the tangible and intangible net assets acquired (in thousands):

	January 1, 2017
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment	$	6,000
Estimated Tangible and Intangible Net Assets:
Developed technology	$	3,800
Current liabilities	(58		)
Goodwill	2,258
Total estimated tangible and intangible net assets	$	6,000

Business Acquisition, Pro Forma Information

The pro forma adjustments were based on available information and upon assumptions that we believe are reasonable to reflect the impact of these acquisitions on our historical financial information on a supplemental pro forma basis, as follows (in thousands):

	Pro Forma Nine Months Ended September 30,
	2017		2016
	(unaudited)
Revenue	$	261,214	$	234,011
Net income / (loss)	35,380		(2,864		)
Net income / (loss) per diluted share	$	0.72	$	(0.06	)

The following table presents the revenue and earnings of the business combinations in the year of acquisition as reported within the consolidated financial statements for the nine months ended September 30, 2017 (in thousands):

	Nine Months Ended   September 30, 2017
Revenue	$	22,996
Net loss	(3,021		)