Acquisition (Tables)

3 Months Ended

Mar. 31, 2015

Acquisition [Abstract]

Assets Acquired and Liabilities Assumed

The following table summarizes preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date. We are in the process of finalizing third-party valuations of certain intangible assets; thus, the provisional measurements of intangible assets, goodwill and deferred income tax liabilities are subject to change.

	Estimated Fair Value
Cash	$	13,455
Other tangible assets		4,773
Deferred revenue		(11,196	)
Deferred tax liabilities		(18,817	)
Liabilities assumed		(4,446	)
Customer relationships		17,620
Trade names		420
Non-competes		280
Purchased software and technology		28,640
Goodwill		52,889
Fair value of assets acquired and liabilities assumed	$	83,618
Less noncontrolling interest		7,104
Total consideration	$	76,514

Intangible Assets Weighted Average Useful Life

Acquired intangible assets are subject to a weighted-average useful life as shown in the following table:

	Years		Amortization Method
Customer relationships		12.0	Other
Trade names		2.0	Straight-line
Non-competes		4.0	Straight-line
Purchased software and technology		9.8	Straight-line
Goodwill	Indefinite		N/A

Pro Forma Consolidated Income Statement

Pro forma consolidated statements of operations:

	Three Months Ended March 31,
	2015			2014
Net sales	$	61,031		$	60,446
Net income (loss) attributable to common shareholders of Merge		(1,858	)		13,369
Net income (loss) per share attributable to common shareholders of Merge:
Basic	$	(0.02	)	$	0.13
Diluted	$	(0.02	)	$	0.13