Acquired Intangible Assets, net

12 Months Ended

Apr. 30, 2013

Acquired Intangible Assets, net

7. Acquired Intangible Assets, net

On December 1, 2012, the Company closed an agreement to purchase customer contracts operated in Europe by Shopzilla, Inc. (“Shopzilla”) using PowerReviews technology under a license agreement between Shopzilla and PowerReviews. The Company determined that the transaction does not constitute a business combination. The entire purchase price of $4.7 million was allocated to a customer relationship intangible asset as the intent of the purchase was to gain access to Shopzilla’s contractual customer relationships. Cash remitted on the date of purchase was $4.2 million, and $0.5 million of the purchase price has been recorded as a holdback liability recorded in accrued expenses and other current liabilities. On March 1, 2013, the Company purchased additional customer contracts from Shopzilla for $0.2 million. The useful life of the acquired contractual customer relationships was determined to be ten years.

Acquired intangible assets, net as of April 30, 2013 from business combinations (see Note 5) and the intangible asset purchase described above are as follows (in thousands):

	Gross Fair Value		Accumulated Amortization			Net Book Value
Customer relationships	$	51,238	$	(3,924	)	$	47,314
Developed technology		5,400		(1,590	)		3,810
Domain name (indefinite useful life)		800		—			800
	$	57,438	$	(5,514	)	$	51,924

For the year ended April 30, 2013, the Company incurred amortization expense on acquired intangible assets of $5.5 million, of which $1.6 million was included in cost of revenue. The Company did not have any acquired intangible assets at April 30, 2012, nor did it incur any amortization expense for acquired intangible assets for the year ended April 30, 2012.