Business Acquisitions

12 Months Ended

Jan. 31, 2022

Business Acquisitions And Divestitures [Abstract]

Business Acquisitions

Note 13:  Business Acquisitions

Broadsmart Global, Inc.

On May 24, 2019, the Company acquired all outstanding stock of Broadsmart, a provider of cloud-based UCaaS solutions based in Florida. The cash consideration transferred for Broadsmart was $7.1 million, net of cash assumed of $0.6 million. The Company acquired Broadsmart to provide scale for the Ooma Office and Ooma Enterprise platforms, which aligns with the Company’s overall enterprise growth strategy.

The fair values of assets acquired and liabilities assumed as of the date of acquisition was as follows (in thousands):

	Fair Value
Cash	$	649
Accounts receivable		1,003
Other current and non-current assets		639
Intangible assets		6,107
Goodwill		366
Accounts payable and other liabilities		(1,043	)
Net assets acquired	$	7,721

Intangible assets acquired consisted of customer relationships of $5.8 million and trade names of $0.3 million.  The acquisition of Broadsmart was treated as an asset purchase for income tax purposes, and therefore, the transaction did not result in the recording of deferred taxes as the Company's tax basis in the acquired assets equaled its book basis. The resulting goodwill from this acquisition was deductible for U.S. income tax purposes.