2. Acquisitions

Adeptra

On September 7, 2012, we acquired 100% of the common stock of Adeptra. The primary objective of the acquisition is to accelerate success in the fast-growing mobile economy by integrating our decision management solution and Adeptra’s customer engagement and risk intervention platform.

The following table summarizes the consideration paid for Adeptra and the amounts for assets acquired and liabilities assumed, recognized based on their estimated fair values at the acquisition date:


	(In thousands)
Consideration
Cash	$	113,027

Acquisition-related costs (included in the company’s consolidated statement of income for the year ended September 30, 2012 as a component of restructuring and acquisition-related expense)	$	984

Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	7,648
Accounts receivable, net		8,939
Prepaid expenses and other current assets		1,380
Property and equipment, net		1,428
Intangible assets
Completed technology		24,200
Customer relationships		11,990
Trade Names		510
Other assets		100
Accounts payable		(4,350	)
Accrued compensation and employee benefits		(2,093	)
Other accrued liabilities		(3,128	)
Deferred revenue		(357	)
Deferred income taxes		(18	)
Short-term loan		(5,466	)

Total identifiable net assets		40,783

Goodwill		72,244

Total	$	113,027

The acquired identifiable intangible assets have a weighted average useful life of approximately 6.6 years and are being amortized using the straight-line method over their estimated useful lives as follows: completed technology, five years, customer relationships, ten years, and trade names, one year. The goodwill of $72.2 million arising from the acquisition consists largely of the revenue synergies related to up-sell and cross-sell opportunities driven by the complementary nature of our solutions, expansion of our offerings across vertical markets, and the ability to drive Adeptra solutions through a larger sales team with global reach. The goodwill was allocated to our Applications segment and is not deductible for tax purposes. Our results of operations for fiscal 2012 included the operating results of Adeptra since the date of acquisition, the amounts of which were not material to the Company’s results of operations for the periods presented.

The following pro forma combined revenues for the years ended September 2012 and 2011, give effect to the acquisition as if it had been completed on October 1, 2010. These pro forma revenues do not reflect any operating efficiencies or revenue enhancements that may be achieved by the combined companies; are presented for informational purposes only; are not necessarily indicative of what the actual revenues would have been had the acquisition taken place as of that date; nor are they indicative of future consolidated results of operations.


	Years Ended September 30,
	2012		2011
	(In thousands)
Revenues	$	719,980	$	655,897

The pro forma earnings impact of this acquisition was not deemed material to the Company’s results of operations for the periods presented.

Entiera

On May 7, 2012, we acquired 100% of the common stock of Entiera, an innovative provider of customer dialogue management solutions. The acquisition of Entiera was consummated principally to productize our analytics and strategic decision management solutions through an interactive marketing automation platform with the objective of accelerating our growth in marketing solutions across multiple industries.

The following table summarizes the consideration paid for Entiera and the amounts for assets acquired and liabilities assumed, recognized based on their estimated fair values at the acquisition date:


	(In thousands)
Consideration
Cash	$	18,390

Acquisition-related costs (included in the company’s consolidated statement of income for the year ended September 30, 2012 as a component of restructuring and acquisition-related expense)	$	163

Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	138
Accounts receivable, net		546
Prepaid expenses and other current assets		153
Deferred income taxes		1,024
Property and equipment, net		100
Intangible assets
Completed technology		2,200
Customer relationships		300
Other assets		24
Accounts payable		(725	)
Other accrued liabilities		(152	)
Deferred revenue		(254	)

Total identifiable net assets		3,354

Goodwill		15,036

Total	$	18,390

The acquired identifiable intangible assets have a weighted average useful life of approximately 4.1 years and are being amortized using the straight-line method over their estimated useful lives as follows: completed technology, four years and customer relationships, five years. The goodwill of $15.0 million arising from the acquisition consists largely of the synergies created by leveraging Entiera’s SaaS-delivered solution in conjunction with our marketing solutions. The goodwill was allocated to our Applications segment and is not deductible for tax purposes. Entiera has been included in our operating results since the acquisition date. The pro forma impact of this acquisition was not deemed material to the Company’s results of operations for the periods presented.