Acquisitions (Tables)

12 Months Ended

Dec. 31, 2012

Acquisitions [Abstract]

Purchase Price Allocation

The acquisition of AMICAS was accounted for in accordance with ASC Topic No. 805, Business Combinations.  Merge was considered the accounting acquirer.  Under the acquisition method of accounting, the total purchase price of approximately $223,910 was allocated to the net tangible and intangible assets acquired and liabilities assumed, based on various estimates of their respective fair values.  The allocation of the purchase consideration was based upon estimates made by us with the assistance of independent valuation specialists.  The purchase price allocation, based on AMICAS' assets and liabilities as of April 28, 2010, was as follows:

	Estimated Fair Value
Cash	$	15,125
Other tangible assets		46,081
Liabilities assumed		(32,080	)
Purchased and developed software		19,200
Customer relationships		30,400
Backlog		8,100
Trade names		3,600
Non-competes		3,100
Goodwill		130,384
Total consideration	$	223,910

Acquired Intangible Assets Amortization Period

The amounts allocated to purchased and developed software, customer relationships, trade names, employee non-compete agreements and backlog were estimated by us based on the work performed by independent valuation specialists, primarily through the use of discounted cash flow techniques.  Appraisal assumptions utilized under these methods include a forecast of estimated future net cash flows, as well as discounting the future net cash flows to their present value.  Acquired intangible assets are being amortized over the estimated useful lives as set forth in the following table:

	Years		Amortization Method
Purchased and developed software		8.0	Straight-line
Customer relationships		9.7	Other
Backlog		4.7	Other
Trade names		12.0	Straight-line
Non-competes		7.0	Straight-line
Goodwill	Indefinite		N/A

Result of Operations

The following unaudited pro forma condensed combined results of operations for the year ended December 31, 2010 are based on the historical financial statements of Merge and AMICAS giving effect to the business combination as if it had occurred at the beginning of the period presented.  This pro forma data has been adjusted to exclude pre-acquisition revenue and cost of sales related to sales by Merge to AMICAS as well as the amortization of intangible assets acquired by AMICAS, while including amortization of purchased intangible assets, interest on the Notes and preferred stock dividends during the entire applicable periods.  This data is not necessarily indicative of the results of operations that would have been generated if the transactions had occurred at the beginning of the respective periods.  Moreover, this data is not intended to be indicative of future results of operations.

	Year Ended
	December 31, 2010
Revenue	$	177,019
Net loss available to common shareholders		(48,893	)
Loss per share:
Basic	$	(0.59	)
Diluted	$	(0.59	)