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Acquisitions
12 Months Ended
Dec. 31, 2011
Acquisitions [Abstract]  
Acquisitions

(2) ACQUISITIONS

2011

On October 14, 2011, we acquired all of the capital stock of Windsor Management Group, L.L.C. ("Windsor") for a cash purchase price of $16.4 million, net of cash acquired of $7.4 million. Windsor provides a suite of financial and human capital management solutions to the K-12 education market, primarily in the Southwest.

In connection with this transaction we recorded customer relationship of approximately $5.6 million, acquired software of $2.4 million, deferred revenue of $6.2 million and net assets of $1.5 million. We recorded goodwill of approximately $13.3 million, all of which is expected to be deductible for tax purposes. Customer relationships and acquired software will be amortized over a weighted average period of eight years. We believe likely market participants for this transaction would be software companies with a presence in the K-12 school market. Therefore, the goodwill of $13.3 million arising from the acquisition is primarily attributed to our ability to maximize the value of the customer base through Tyler's software product suite that targets the K-12 school market and to a much lesser extent, the assembled workforce of Windsor. Our balance sheet as of December 31, 2011 reflects the allocation of the purchase price to the assets acquired based on their estimated fair values at the date of acquisition.

The operating results of this acquisition are included in our results of operations from the date of acquisition.

2010

On January 1, 2010 we acquired all of the assets of Wiznet, Inc. ("Wiznet") for a cash purchase price of $9.5 million. Wiznet provides electronic document filing solutions for courts and law offices throughout the United States and is integrated with our primary courts and justice solution.

2009

On July 16, 2009, we completed the acquisition of certain assets of KPL, Inc. d/b/a Parker-Lowe & Associates ("Parker-Lowe") for $700,000 in cash. Parker-Lowe provides scanning and retrieval software and related services for land record and social services offices in local governments primarily in the North Carolina area. This acquisition was accounted for as a purchase of a business.

On April 3, 2009, we completed the acquisition of all of the capital stock of Assessment Evaluation Services, Inc. ("AES"). AES develops integrated property appraisal solutions and specializes in applications that deal with the unique provisions of the California Revenue and Taxation Code. The purchase price was approximately $1.1 million in cash.

In 2009, we also paid approximately $1.1 million for certain software assets to complement our tax and appraisal solutions and our student information management solutions.