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Acquisition
6 Months Ended
Sep. 30, 2011
Acquisition [Abstract] 
Acquisition
Note 2 – Acquisition

On July 1, 2011, the Company acquired all of the outstanding capital stock of dynaTrace software, Inc. (“dynaTrace”), through a merger of dynaTrace with a wholly owned subsidiary of the Company, for $255.8 million in cash, plus approximately $300,000 of direct acquisition costs recorded to “Administrative and general” expense. dynaTrace was a privately-held company whose technology enables continuous tracking of business transactions and provides exact identification of performance problems, enhancing our Gomez On-premises software solutions.  The assets and liabilities acquired have been recorded at their estimated fair values as of the purchase date. The purchase price exceeded the estimated fair value of the acquired assets and liabilities by $210.9 million, which was recorded to goodwill. The estimated fair value of intangible assets subject to amortization totaled $42.0 million, of which $28.5 million, $9.8 million and $3.7 million related to developed technology, trade names, and customer relationships with a useful life of five, three and ten years, respectively.  The purchase price was funded with the Company's existing cash resources and borrowings of $129.5 million under its credit facility described in Note 11.

Compuware acquired dynaTrace to obtain the technology described above.  The acquisition price in excess of the identifiable assets (goodwill) is a result of our expected synergies from the acquisition which are primarily related to expansion of the dynaTrace sales channel. In addition, we plan to integrate this technology with our Gomez On-premises and SaaS offerings and expand the dynaTrace sales channel into all of our sales channels including our direct sales force, inside sales force and independent distributors and partners.
 
The operations of dynaTrace will be managed as part of our APM business unit going forward.  Therefore, financial activity and goodwill are included in the APM segment and reporting unit, respectively.

This acquisition was considered immaterial for disclosure of supplemental pro forma information of the acquiree since the acquisition date.