Acquisitions

In December 2013, the Company acquired all of the issued and outstanding shares of Latista Technologies, Inc. ("Latista"). Latista is the leading provider of mobile-enabled, cloud-based field management solutions in the industry. The LATISTA solution expanded the Company’s suite of solutions, especially in the field management process. In addition, we formed Textura Vostok, a Russian entity, and hired personnel previously employed by a Russian affiliate of Latista. The aggregate purchase price of $34,875 was paid in cash.

Due to the acquisition of Latista closing late in the three months ended December 31, 2013 and related time constraints, the purchase price allocation for the Latista acquisition reflected in the Company's condensed consolidated financial statements included in its quarterly report on Form 10-Q for the quarter ended December 31, 2013 filed with the SEC on February 13, 2014("the December 31 Form 10-Q") was preliminary. Since that time, the Company has finalized the purchase price allocation, which is reflected in the table below. From what was previously disclosed in the December 31 Form 10-Q, the value attributed to goodwill and deferred revenue increased by $126 upon its finalization.



	Amount
	(in thousands)
Identifiable intangible assets	$	8,700
Goodwill	28,911
Deferred revenue	(2,151		)
Other current assets (liabilities), net	(585		)
Net assets acquired	$	34,875

Other current assets (liabilities), net in the table above include Latista-related deferred tax liabilities of $1,083. As a result of the nature of the deferred tax liabilities, the Company reduced the valuation allowance on its deferred tax assets and recognized a tax benefit of $1,083 in its statement of operations during the three months ended December 31, 2013. The deferred tax assets and liabilities primarily relate to timing differences in the amortization of intangible assets and net operating losses. On the balance sheet as of December 31, 2013, the Company had short-term deferred tax assets of $781 recorded in prepaid expenses and other current assets, long-term deferred tax assets of $946 recorded in other assets, and long-term deferred tax liabilities of $1,727 recorded in other long-term liabilities.

As the acquisition of Latista occurred in the quarter ended December 31, 2013, its results have been included in the condensed consolidated statement of operations for the three months ended December 31, 2013 since December 2, 2013, the closing date of the acquisition. The Latista acquisition, including Textura Vostok, contributed $200 to net revenue during the three months ended December 31, 2013. The impact of Latista, including Textura Vostok, included in the consolidated results was a net loss of $500 and net loss per share of $0.02.

The following table contains unaudited pro forma consolidated statements of operations information assuming the acquisition of Latista occurred on October 1, 2012 and includes adjustments for amortization of intangible assets and interest expense. This pro forma information is presented for illustrative purposes only and is not indicative of what actual results would have been if the acquisition of Latista had taken place on October 1, 2012, or of future results.



	Three months ended December 31,
	2013			2012
	(in thousands)
Revenues	$	12,619		$	7,086
Loss from operations	$	(8,261	)	$	(5,621	)
Net loss available to Textura Corporation common stockholders	$	(7,320	)	$	(6,784	)
Net loss per share, basic and diluted	$	(0.30	)	$	(0.79	)

The Company believes the goodwill reflects its expectations related to economies of scale and leveraging of the LATISTA solution with existing and future solution offerings. Goodwill is not deductible for tax purposes. Identifiable intangible assets consist of trademarks, technology and customer relationships, which are being amortized over a period of three, three and ten years, respectively.