Acquisitions

12 Months Ended

Jan. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Fiscal 2022 Acquisitions

The results of operations for the following acquisitions are included in the accompanying Consolidated Statements of Operations since their respective acquisition dates. Pro forma results of operations have not been presented because the effects of these acquisitions were not material to Autodesk’s Consolidated Financial Statements.

Upchain

On May 11, 2021, Autodesk acquired 100% of the outstanding stock of Upchain Inc. (“Upchain”), a cloud-based provider of product lifecycle management and product data management systems, for approximately $126.7 million in cash and Autodesk will issue a fixed amount of $13.1 million in common stock at future dates to certain employees in connection with the acquisition for a total consideration of $139.8 million. Of the total consideration transferred, $123.6 million is considered purchase consideration. Of the remaining amount, $13.1 million is accounted for as liability-classified awards and recognized as compensation expense using the straight-line method over the vesting period, and $3.1 million was recorded as stock-based compensation expense during the fiscal year ended January 31, 2022. Issuance of the $13.1 million fixed value in common stock is dependent on the respective employees’ continued employment and vests 40% and 60% on the first and second anniversaries of the closing date, respectively. The number of shares will be determined based on the VWAP of Autodesk’s common stock for the ninety consecutive trading day period ending on the release date. The number of shares is estimated to be 48,000 based on the VWAP of Autodesk’s common stock for the ninety consecutive trading day period ending January 31, 2022, the last trading day of the fiscal quarter. See also Note 4, “Equity Compensation”.

Autodesk expects to integrate Upchain’s unified cloud platform in Autodesk solutions to centralize data management and process management.

Innovyze

On March 31, 2021, Autodesk acquired all of the outstanding stock of Storm UK Holdco Limited, the parent of Innovyze, Inc. (“Innovyze”), a global leader in water infrastructure software. Innovyze is expected to provide comprehensive water modeling solutions that augment Autodesk’s BIM offerings in civil engineering, and is expected to extend Autodesk’s presence into operations and maintenance of water infrastructure assets.

The acquisition-date fair value of the consideration transferred totaled $1,038.1 million, which consisted of $1,035.5 million of cash and 9,277 shares of Autodesk’s restricted common stock at an aggregate fair value of $2.6 million. Of the total consideration transferred, $1,035.5 million is considered purchase consideration. The remaining amount of $2.6 million was recorded in “Prepaid expenses and other current assets” and “Long-term other assets”. The 9,277 shares of restricted common stock are subject to forfeiture until the second anniversary of the acquisition closing date. 50% are released from restriction on both the first and second anniversaries subject to continued employment. See also Note 4, “Equity Compensation”.

Other Acquisitions

During the fiscal year ended January 31, 2022, Autodesk completed four additional business combinations. The acquisition-date fair value of the consideration transferred totaled $113.3 million, which consisted of $98.8 million of cash, a fixed amount of $10.6 million in common stock to be issued at future dates to certain employees in connection with the acquisition, 12,782 shares of Autodesk’s restricted common stock at an aggregate fair value of $3.5 million, and $0.4 million of assumed liabilities on behalf of the sellers. Of the total consideration transferred, $99.2 million is considered purchase consideration. The remaining amounts of $3.5 million was recorded in “Prepaid expenses and other current assets” and “Long-term other assets” and $10.6 million is accounted for as liability-classified awards and recognized as compensation expense using the straight-line method over the vesting period.

Purchase Price Allocation

The acquisitions during fiscal 2022 were accounted for as business combinations. The goodwill recorded was primarily attributable to synergies expected to arise after the acquisition. Goodwill of $86.7 million, $323.5 million, and $69.7 million is deductible for U.S. income tax purposes for Upchain, Innovyze, and other acquisitions, respectively. The transaction costs related to the acquisitions were not material.

The following table summarizes the assets acquired and liabilities assumed by major class for the business combinations that were completed during the fiscal year ended January 31, 2022:


	Innovyze		Upchain		Other		Total
Developed technologies	$	93.0	$	17.6	$	27.0	$	137.6
Customer relationships	221.0		10.4		4.7		236.1
Trade name	4.0		0.4		0.5		4.9
Backlog	0.5		—		—		0.5


Goodwill	764.4		98.3		73.5		936.2
Deferred revenue and long-term deferred revenue	(12.3)		(2.6)		(3.5)		(18.4)
Long-term deferred income taxes	(42.4)		(0.7)		(2.5)		(45.6)
Net tangible assets (liabilities)	7.3		0.2		(0.5)		7.0
Total	$	1,035.5	$	123.6	$	99.2	$	1,258.3

For the business combinations, the allocation of purchase price consideration to certain assets and liabilities as well as the final amount of purchase consideration are not yet finalized. For the items not yet finalized, Autodesk's estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). The primary areas of the preliminary purchase price allocation that are not yet finalized are amounts for tax assets and liabilities, deferred revenue, and residual goodwill.

Fiscal 2021 Acquisitions

Spacemaker AS

On November 23, 2020, Autodesk acquired Spacemaker AS (“Spacemaker”). Spacemaker is a leading provider of cloud-based artificial intelligence technology and generative design enabling architects, urban designers, and real estate developers to optimize and maximize the potential of a building site, especially during early-stage design.

The acquisition-date fair value of the consideration transferred totaled $252.0 million, which consisted of $214.1 million of cash and 147,264 shares of Autodesk’s common stock at an aggregate fair value of $37.9 million. Of the total consideration transferred, $231.1 million is considered purchase consideration. Of the remaining amount, $18.9 million was recorded in “Prepaid expenses and other current assets” and “Long-term other assets” on our Consolidated Balance Sheets and will be amortized to stock-based compensation expense, and $2.0 million was recorded as stock-based compensation expense during the fiscal quarter ended January 31, 2021. The 147,264 shares of common stock are held in escrow until the third anniversary of the acquisition closing date, and 73,632 of those shares are subject to forfeiture by the employee if employment terminates during the three-year employment period. See Note 4, “Equity Compensation ,” for further discussion.

Other Acquisitions

During the fiscal year ended January 31, 2021, Autodesk also completed two other business combinations. The acquisition-date fair value of the cash consideration transferred totaled $45.4 million.

The results of operations for Spacemaker and the other acquisitions were included in the accompanying Consolidated Statement of Operations from the dates of the respective acquisitions. Goodwill of $193.0 million is deductible for U.S. income tax purposes.

Fiscal 2020 Acquisitions

During the fiscal year ended January 31, 2020, Autodesk did not complete any business combinations.