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Business Combination (Tables)

12 Months Ended

Jun. 30, 2021

Summary of Acquisition Purchase Consideration

The acquisition purchase consideration totaled $2.3 billion, which consisted of the following (in thousands):

Equity consideration ⁽¹⁾	$	1,658,818
Cash		664,779
Total	$	2,323,597

⁽¹⁾

^{This includes 10,767,140 shares of the Company’s common stock issued with a fair value based upon the opening market price on the acquisition date. This also includes the stock options assumed to replace stock options that were granted after May 1, 2019 under Divvy’s 2016 Equity Incentive Plan (Divvy 2016 Plan) and were outstanding on the acquisition date. The fair value of these stock options was $55.3 million, which was the amount attributable to the pre-combination requisite service period. See Note 11 for additional details about the share-based compensation arrangements.}

Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):

Cash	$	108,689
Acquired card receivables		159,784
Accounts receivable		7,435
Card receivables held for sale		12,730
Property and equipment		15,805
Intangible assets		423,000
Prepaid expenses and other assets		57,669
Total identifiable assets acquired		785,112
Accounts payable and other liabilities		(153,855	)
Outstanding borrowings from credit facilities		(79,703	)
Total liabilities assumed		(233,558	)
Net identifiable assets acquired		551,554
Goodwill		1,772,043
Net assets acquired	$	2,323,597

Summary of Preliminary Fair Values Allocated to Identifiable Intangible Assets and Estimated Useful Lives

The preliminary fair values allocated to the identifiable intangible assets and their estimated useful lives are as follows:

	Preliminary fair value		Weighted average useful life (In years)
Customer relationships	$	198,000		10.0
Developed technology		191,000		6.0
Trade name		34,000		3.0
Total	$	423,000		7.6

Summary of Unaudited Proforma Financial Information

Below is the unaudited pro forma financial information of the combined results of operations of the Company and Divvy as if the acquisition occurred on July 1, 2019 (in thousands).

	Year ended June 30,
	2021			2020
Total revenue	$	307,618		$	192,770
Net loss	$	(223,470	)	$	(206,166	)