Acquisitions

12 Months Ended

Sep. 30, 2020

Note 2—Acquisitions

Pending Acquisition. On January 13, 2020, the Company entered into a definitive agreement to acquire Plaid Inc. for $5.3 billion. The Company will pay approximately $4.9 billion of cash and $0.4 billion of retention equity and deferred equity consideration. This acquisition is subject to customary closing conditions, including regulatory reviews and approvals. On November 5, 2020, the U.S. Department of Justice filed a complaint in the U.S. District Court for the Northern District of California seeking a permanent injunction to prevent Visa from acquiring Plaid. See Note 20—Legal Matters.

Fiscal 2019 Acquisitions. The Company acquired several businesses for a total purchase consideration of $942 million, which consisted of $888 million in cash and $54 million of deferred cash consideration. The allocation of the purchase price to the tangible and intangible assets acquired and to liabilities have been completed as of September 30, 2020. There were no material adjustments to the preliminary purchase price allocation as of September 30, 2019. Goodwill was recorded to reflect the excess purchase consideration over net assets acquired, which represents the value that is expected from expanding the Company’s product offerings and other synergies. Goodwill that is expected to be deductible for tax purposes amounts to approximately $360 million.

The following table summarizes the purchase price allocation in aggregate for the businesses acquired:


	Purchase Price Allocation
	(in millions)
Net tangible assets acquired (liabilities assumed)	$	23
Intangible assets	319
Goodwill	647
Total(1)	$	989

(1)Includes fair value of previously-held interest in the acquired entities of $47 million.

The following table summarizes the identified intangible assets acquired based on the purchase price allocations:


	Acquisition Date Fair Value		Weighted-Average Useful Life
	(in millions)		(in years)
Developed technologies	$	70	4
Customer relationships	249		12
Total	$	319	10

Pro forma information related to the acquisitions has not been presented as the impact was not material to the Company’s financial results. Transaction costs incurred were not material and were included in the Company’s consolidated statements of operations.