Business Combinations

12 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Business Combinations

Business Combinations

Acquisition of Gennius

On March 11, 2015, the Company acquired Gennius, a leading provider of healthcare data analytics. The preliminary Gennius purchase price totaled $2,345. The Company accounted for the Gennius acquisition as a purchase business combination. The preliminary purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent management’s estimate of fair value. The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach. Goodwill arising from the acquisition of Gennius was determined as the excess of the preliminary purchase price over the net acquisition date fair values of the acquired assets and the liabilities assumed, and is not deductible for tax purposes. The Gennius goodwill represents the expected future synergies resulting from the integration of the Gennius healthcare data analytics technology, which will enhance the Company's current enterprise analytics competencies and broaden its business intelligence capabilities for addressing new value-based care requirements. Gennius operates under the NextGen Division.

The total preliminary purchase price for the Gennius acquisition during the year ended March 31, 2015 is summarized as follows:

	Gennius
Total preliminary cash purchase price	$	2,345

The following table summarizes the preliminary purchase price allocation for the Gennius acquisition:

	Gennius
Fair value of the net tangible assets acquired and liabilities assumed:
Other assets	$	4
Deferred revenues	(37		)
Other liabilities	(189		)
Total net tangible assets acquired and liabilities assumed	(222		)
Fair value of identifiable intangible assets acquired:
Software technology	1,800
Goodwill	767
Total identifiable intangible assets acquired	2,567
Total preliminary purchase price	$	2,345

The actual results to date and pro forma effects of the Gennius acquisition would not have been material to the Company’s results of operations and are therefore not presented.

Acquisition of Mirth

On September 9, 2013, the Company acquired 100% of the outstanding capital stock of Mirth, a global leader in health information technology that helps clients achieve interoperability. The acquisition enhances the Company’s current enterprise interoperability initiatives and broadens its accountable and collaborative care, population health, disease management and clinical data exchange offerings. The Mirth purchase price totaled $56,222, which included share-based contingent consideration with an estimated fair value of $13,307 payable over a three year period subject to achievement of certain strategic milestones. The share-based contingent consideration was adjusted by a $5,239 fair value discount, which is being amortized over the three year achievement period. The goodwill arising from the acquisition of Mirth represents the opportunity for the Company to sell Mirth-powered health information technology solutions as a complement to its other products as well as other expected future market participant synergies and is expected to be deductible for income tax purposes over a period of 15 years. Mirth operates under the NextGen Division.

The Company accounted for the Mirth acquisition as a purchase business combination. The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent management’s estimate of fair value. The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach.

The total purchase price for the Mirth acquisition during the year ended March 31, 2014 is summarized as follows:

	Mirth
Cash paid	$	35,033
Common stock issued at fair value	7,882
Contingent consideration	13,307
Total purchase price	$	56,222

The following table summarizes the final purchase price allocation for the Mirth acquisition:

	Mirth
Fair value of the net tangible assets acquired and liabilities assumed:
Current assets (including accounts receivable of $3,939)	$	4,231
Equipment and improvements	822
Accounts payable and accrued liabilities	(764		)
Deferred revenues	(5,802		)
Total net tangible assets acquired and liabilities assumed	(1,513		)
Fair value of identifiable intangible assets acquired:
Trade name	1,350
Customer relationships	2,800
Software technology	22,200
Goodwill	31,385
Total identifiable intangible assets acquired	57,735
Total purchase price	$	56,222

The pro forma effects of the Mirth acquisition would not have been material to the Company’s results of operations and are therefore not presented.