Acquisitions

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

Google Domains

On June 15, 2023, the Company entered into an asset purchase agreement (the "Google Domains APA") between the Company and Google LLC (“Google”) to acquire, among other things, Google's domain assets, including all domain names for which Google is the registrar or reseller (the “Google Domains Asset Acquisition”). The Google Domains Asset Acquisition closed on September 7, 2023 (the “Closing Date”) subsequent to certain regulatory approvals and customary closing conditions.

The Company recognized the acquisition as an asset acquisition. The total amount paid for the Google Domains Asset Acquisition was $180,721, including direct transaction costs of $721, which was paid on the Closing Date. The total amount paid included $100,000 in cash funded by additional term loan commitments with the remaining amount paid using cash on hand. See “Note 10. Debt” for further information on the additional term loan commitments funded during the three months ended September 30, 2023. Based on the relative fair values of the assets acquired in the Google Domains APA, $176,721 was allocated to the asset acquired classified as customer relationships and included in intangible assets, net in the

condensed consolidated balance sheet. The identifiable finite-lived intangible asset is expected to be amortized over its useful life which is estimated to be 4 years. The remaining $4,000 of the total amount paid was related to a transaction service agreement (the "Google TSA") between the Company and Google and is included within prepaid expenses and other current assets in the condensed consolidated balance sheet. The Google TSA will be expensed over a period of 8 months with expenses allocated to research and product development expenses and cost of revenue in the condensed consolidated statement of operations based on the nature of the services being provided to the Company.As of the Closing Date, the Company agreed to reimburse Google for deposits it assumed of $11,719 for domain name registration fees remaining at certain third-party registries. As of September 30, 2023, the Company had $7,537 of these deposits remaining in prepaid expenses and other current assets and $11,719 remaining in accrued liabilities in the condensed consolidated balance sheet