Acquisitions

6 Months Ended

Dec. 31, 2019

Sabisu Ltd.

On June 12, 2019, we completed the acquisition of all the outstanding shares of Argent & Waugh Limited and Sabisu Ltd. (“Sabisu”), a provider of a flexible enterprise visualization and workflow solution to deliver real-time decision support, for a total cash consideration of £6.0 million ($7.6 million). The purchase price consisted of £4.8 million ($6.1 million) of cash paid at closing and an additional £1.2 million ($1.5 million) to be held back until June 2021 as security for certain representations, warranties, and obligations of the sellers. The holdback is recorded in other non-current liabilities in our consolidated balance sheet.

An allocation of the purchase price is as follows:



	Amount
	(Dollars in Thousands)
Tangible assets acquired, net	$	743
Identifiable intangible assets:
Technology-related	1,906
Customer relationships	1,144
Goodwill	4,395
Deferred tax liabilities	(564		)
Total assets acquired, net	$	7,624

The goodwill reflects the value of the assembled workforce and the company-specific synergies we expect to realize by selling Sabisu products and services to our existing customers. The results of operations of Sabisu have been included prospectively in our results of operations since the date of acquisition.

Mnubo, Inc.

On July 12, 2019, we completed the acquisition of all the outstanding shares of Mnubo Inc. (“Mnubo”), a Canada-based provider of purpose-built artificial intelligence and analytics infrastructure for the internet of things, for a total cash consideration of $78.3 million (102.3 million CAD). The purchase price of $78.3 million includes $7.9 million (10.3 million CAD) paid into an escrow account to be held back until January 2021 as security for certain representations, warranties, and obligations of the sellers.

The following allocation of the initial purchase price includes a preliminary valuation of the acquired intangible assets and deferred revenue:



	Amount
	(Dollars in Thousands)
Tangible assets acquired, net	$	237
Identifiable intangible assets:
Technology-related	13,667
Customer relationships	2,991
Goodwill	61,742
Deferred tax liabilities	(374		)
Total assets acquired, net	$	78,263

During the three months ended December 31, 2019, the Company updated its preliminary fair value estimates of its net assets acquired, primarily due to a review of the cash flows used to measure fair value of intangible assets, as well as updates to estimated carrying values of other assets and liabilities based on an ongoing review of their fair values. The goodwill reflects the value of the assembled workforce and the company-specific synergies we expect to realize by selling Mnubo products and services to our existing customers. The results of operations of Mnubo have been included prospectively in our results of operations since the date of acquisition.