Business Combinations

12 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

Business Combinations

(22)Business Combinations

On July 20, 2012, we acquired 100% of the outstanding shares of Umbian Inc., an innovative data services technology provider, based in Nova Scotia, Canada.  Umbian offers a comprehensive patient compliance management solution, which monitors continuous positive airway pressure (CPAP) devices and provides a suite of interactive follow-up services for healthcare providers. The initial purchase price was $5.6 million with an additional potential earn-out payment of up to $35.4million based on the achievement of certain performance milestones, up to June 30, 2014, of which we have recognized a liability of $12.2 million.  The acquisition has been accounted for as a business combination using purchase accounting and is included in our consolidated financial statements from July 20, 2012.  The acquisition is not considered a material business combination and accordingly pro forma information is not provided.  The acquisition was funded through cash on-hand and we have not incurred any material acquisition related costs.

The cost of the acquisition has been allocated to the assets acquired and liabilities assumed based on estimates of their fair values at the date of acquisition.  We completed the purchase price allocation during the quarter ended December 31, 2012.  As part of the final purchase price allocation, we recognized an intangible asset relating to developed technology of $5.5 million and goodwill of $13.9 million.  The goodwill recognized as part of this acquisition, which is not deductible for tax purposes, mainly represents the synergies that are unique to our combined businesses and the potential for new products and services to be developed in the future.