Business Combinations

6 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Business Combinations

Business Combinations

On January 12, 2015, we acquired 100% of the equity of TONBELLER Aktiengesellschaft ("TONBELLER"). TONBELLER is an innovative provider of financial crime and compliance ("FCC") solutions that support the demanding regulatory compliance requirements of more than a thousand banks and commercial organizations. This acquisition will allow us to capitalize on the escalating demand for new, risk-based, integrated FCC solutions.

The purchase price allocation as of the date of the acquisition was based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed become available. The major classes of assets and liabilities to which we have preliminarily allocated the purchase price are as follows:

	(In thousands)
Consideration
Cash	$	59,640
Acquisition-related costs (included in the company’s condensed consolidated statement of income for the quarter and six months ended March 31, 2015 as a component of selling, general and administrative expenses)	$	486
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	2,640
Accounts receivable, net	5,389
Prepaid expenses and other current assets	209
Intangible assets:
Completed technology	2,700
Customer relationships	11,600
Trade names	600
Other assets	112
Accounts payable	(1,118		)
Accrued compensation and employee benefits	(1,493		)
Other accrued liabilities	(2,838		)
Deferred income taxes	(4,349		)
Total identifiable net assets	13,452
Goodwill	46,188
Total	$	59,640

The acquired identifiable intangible assets have a weighted average useful life of approximately 4.9 years and are being amortized using the straight-line method over their estimated useful lives as follows: completed technology, five years; customer relationships, five years; and trade names, three years. The goodwill of $46.2 million arising from the acquisition consists largely of the revenue synergies related to market expansion and more rapid innovation for our solutions. The goodwill was allocated to our Applications segment and is not deductible for tax purposes. TONBELLER has been included in our operating results since the acquisition date. The pro forma impact of this acquisition was not deemed material to our results of operations.