Business Combinations |
12 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | |
| Business Combinations | Business Combinations DevCycle On January 13, 2026, the Company acquired certain assets from Taplytics Inc. (“DevCycle”), a feature management platform, to help developers, site reliability engineers, and platform teams bring progressive delivery of AI-native applications directly into the Dynatrace platform. The purchase consideration consisted of $6.0 million of cash paid at closing and $0.8 million to be paid within 12 months after closing. The fair value of the purchase price was allocated to the identifiable assets acquired and liabilities assumed as of the acquisition date, with the excess recorded to goodwill. The Company acquired $0.8 million of net assets, including $1.6 million of intangible assets, resulting in goodwill of $6.0 million. The goodwill was allocated to the Company’s one reporting unit. Runecast Solutions Limited On March 1, 2024, the Company acquired all of the outstanding equity of Runecast Solutions Limited (“Runecast”), a provider of software solutions that provide insights for security compliance, vulnerability assessment, and configuration management for complex, on-premises, hybrid and multi-cloud IT environments. This acquisition expanded the Company’s platform from the addition of Runecast’s technology and experienced team. The purchase consideration consisted of $26.1 million of cash paid at closing and $2.3 million in deferred cash payments for a post-closing purchase price adjustment and a holdback paid within 15 months after the acquisition date to satisfy indemnification claims. The Company paid $2.2 million and $0.1 million of the deferred cash considerations during the years ended March 31, 2026 and 2025, respectively. In connection with the acquisition of Runecast, $9.0 million of RSAs were issued to the previous owners subject to continuing employment and certain indemnification clauses. For the years ended March 31, 2026, 2025, and 2024, the Company recognized $2.9 million, $3.7 million, and $0.3 million of share-based compensation expense for these RSAs, respectively. The fair value of the purchase price was allocated to the identifiable assets acquired and liabilities assumed as of the acquisition date, with the excess recorded to goodwill. The Company acquired $3.2 million of net assets, including $7.5 million of intangible assets, resulting in goodwill of $25.2 million. The fair value of acquired assets and assumed liabilities was finalized in March 2025. Goodwill related to Runecast is primarily attributable to expected synergies and acquired skilled workforce. The goodwill was allocated to the Company’s one reporting unit. The Company identified developed technology and customer relationships as the acquired intangible assets. The estimated fair value of the developed technology and customer relationships was $7.3 million and $0.2 million, respectively, which was based on a valuation using the income approach. The estimated useful lives of the developed technology and customer relationships is seven years and four years, respectively. The acquired goodwill and intangible assets were not deductible for tax purposes. Rookout, Ltd. On August 31, 2023, the Company acquired all of the outstanding equity of Rookout, Ltd. (“Rookout”), a provider of enterprise-ready and privacy-aware solutions that enable developers to troubleshoot and debug actively running code in Kubernetes-hosted cloud-native applications. This acquisition expanded the Company’s platform from the addition of Rookout’s technology and experienced team. The purchase consideration of Rookout was $33.4 million, after considering certain adjustments, and was paid from cash on hand. The fair value of the purchase price was allocated to the identifiable assets acquired and liabilities assumed as of the acquisition date, with the excess recorded to goodwill. The Company acquired $6.0 million of net assets, including $7.8 million of intangible assets, resulting in goodwill of $27.4 million. The fair value of acquired assets and assumed liabilities was finalized in August 2024. Goodwill related to Rookout was primarily attributable to expected synergies and acquired skilled workforce. The goodwill was allocated to the Company’s one reporting unit. The Company identified developed technology as the sole acquired intangible asset. The estimated fair value of the developed technology was $7.8 million, which was based on a valuation using the income approach. The estimated useful life of the developed technology is seven years. The acquired goodwill and intangible asset were not deductible for tax purposes.
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