Business Combinations

12 Months Ended

Sep. 30, 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 allows us to capitalize on the escalating demand for new, risk-based, integrated FCC solutions.

The major classes of assets and liabilities to which we have preliminarily allocated the purchase price are as follows:

	(In thousands)
Consideration
Cash	$	59,632
Acquisition-related costs (included in the Company’s consolidated statement of income for the year ended September 30, 2015 as a component of restructuring and acquisition-related expenses)	$	763
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	2,640
Accounts receivable, net	5,331
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	(1,514		)
Other accrued liabilities	(2,728		)
Deferred income taxes	(4,349		)
Total identifiable net assets	13,483
Goodwill	46,149
Total	$	59,632

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 $46.1 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. The final purchase price allocation is subject to the completion of the final valuation of the accounts receivables acquired, which is expected to be completed as soon as is practicable but no later than January 12, 2016, and will not have a material impact on the preliminary purchase price allocation disclosed above. 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.

In fiscal 2014, we acquired 100% of the common stock of InfoCentricity, Inc. for $8.2 million in cash.

In fiscal 2013, we acquired 100% of the ownership interest of CR Software, LLC for $29.6 million in cash. We recorded $16.5 million of intangible assets, which are being amortized using the straight-line method over a weighted average useful life of approximately 8.8 years. The goodwill of $13.7 million was allocated to our Applications segment and was not deductible for tax purposes. We also acquired 100% of the common stock of Infoglide Software, Inc. (“Infoglide”) for $4.4 million in cash.