Business Combinations

12 Months Ended

Sep. 30, 2013

Business Combinations

2. Business Combinations

CR Software

On November 21, 2012, we acquired 100% of the ownership interest of CR Software, LLC (“CR Software”), a provider of enterprise-class collections and recovery solutions for credit issuers, government organizations, collection agencies, retailers, healthcare and other leading enterprises. The primary objective of the acquisition was to help us accelerate the delivery of robust collections and recovery capabilities to clients across multiple industries and organization sizes.

The following table summarizes the consideration paid for CR Software and the allocation of purchase price to assets acquired and liabilities assumed, recognized based on a valuation at the acquisition date:

	(In thousands)
Consideration
Cash	$	29,649
Acquisition-related costs (included in the company’s consolidated statement of income and comprehensive income for the year ended September 30, 2013 as a component of restructuring and acquisition-related expense)	$	306
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	1,211
Accounts receivable, net		2,943
Prepaid expenses and other current assets		119
Property and equipment, net		238
Intangible assets:
Completed technology		10,800
Customer relationships		5,500
Trade names		200
Other assets		28
Accounts payable		(400	)
Accrued compensation and employee benefits		(506	)
Other accrued liabilities		(1,057	)
Deferred revenue		(178	)
Notes payable to affiliate		(2,925	)
Total identifiable net assets		15,973
Goodwill		13,676
Total	$	29,649

The acquired identifiable intangible assets have a weighted average useful life of approximately 8.8 years and are being amortized using the straight-line method over their estimated useful lives as follows: completed technology, five to ten years, customer relationships, ten years, and trade names, one year. The goodwill of $13.7 million arising from the acquisition consists largely of the revenue synergies created by market expansion and increasingly rapid innovation for our collections & recovery solutions. The goodwill was allocated to our Applications segment and is not deductible for tax purposes. CR Software has been included in our operating results since the acquisition date.

Infoglide

On April 1, 2013, we acquired 100% of the common stock of Infoglide Software, Inc. (“Infoglide”) for $4.4 million in cash. Infoglide is a provider of entity resolution and social network analysis solutions used primarily to improve fraud detection, security and compliance. Infoglide’s solutions expedite fraud investigations and will further differentiate FICO’s fraud solutions in banking, insurance, retail and healthcare, as well as enabling FICO analytics to be applied to fraud, security and compliance challenges across multiple industries, including telecommunications and cyber-security. Infoglide has been included in our operating results since the acquisition date.

The pro forma impact of these acquisitions was not deemed material to our results of operations for the periods presented.