Business Combinations

3 Months Ended

Feb. 29, 2012

Business Combinations [Abstract]

Business Combinations

Note 6: Business Combinations

On October 26, 2011, we acquired all of the equity interests in Corticon Technologies, Inc. (Corticon), a privately held business enterprise software company based in Redwood City, California, for $23.0 million. Corticon is a business rules management system vendor that enables organizations to make better, faster decisions by automating business rules. The Corticon products became part of our Enterprise Business Solutions segment. The purpose of the acquisition was to expand the product offerings within the Enterprise Business Solutions segment. The acquisition was accounted for as a purchase, and accordingly, the results of operations of Corticon are included in our operating results from the date of acquisition. We paid the purchase price in cash from available funds.

The preliminary allocation of the purchase price is as follows (in thousands):

	Total			Life
Accounts receivable	$	835
Property and equipment		112
Other assets		125
Acquired intangible assets		4,910			3 to 7 years
Goodwill		24,842
Accounts payable and other liabilities		(2,471	)
Deferred tax liability		(1,814	)
Deferred revenue		(3,639	)
Net cash paid	$	22,900

We recorded the excess of the purchase price over the identified tangible and intangible assets as goodwill. We believe that the investment value of the future enhancement of our product and solution offerings created as a result of this acquisition has principally contributed to a purchase price that resulted in the recognition of $24.8 million of goodwill, which is not deductible for tax purposes. The valuation of acquired tax assets and liabilities is preliminary. We are in the process of investigating the facts and circumstances existing as of the acquisition date in order to finalize our valuation and establish the related recoverable deferred taxes.

We have not disclosed the amount of revenues and earnings of Corticon since acquisition, nor pro forma financial information, as those amounts are not significant to our condensed consolidated financial statements.