v3.26.1
Business Combinations
 3 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combinations Business Combinations
Bindplane
On April 14, 2026, the Company acquired all of the outstanding equity of observIQ, Inc. d/b/a Bindplane (“Bindplane”), a provider of an open-standards-based telemetry pipeline that helps organizations capture and manage data at scale, for an aggregate purchase price of $99.7 million. The acquisition provides Dynatrace’s customers greater access, flexibility, and control of their logs, metrics, and application data. The preliminary purchase consideration consisted of $100.2 million of cash paid at closing and a $0.4 million receivable for purchase price adjustments.
In connection with the acquisition, the Company issued $3.3 million of restricted stock units (“RSUs”) to former Bindplane employees, subject to continuing employment with the Company. During the three months ended June 30, 2026, $0.3 million was recognized as share-based compensation expense.
The acquisition was accounted for as a business combination. The purchase price was allocated to the preliminary fair value of identifiable assets acquired and liabilities assumed as of the acquisition date, with the excess recorded to goodwill as shown below (in thousands).
Assets acquired:
Cash and cash equivalents678 
Accounts receivable, net1,733 
Prepaid expenses and other assets1,077 
Property and equipment74 
Intangible assets44,950 
Total assets acquired$48,512 
Liabilities assumed:
Accounts payable, accrued expenses, and other liabilities818 
Deferred revenue1,089 
Deferred tax liabilities8,239 
Total liabilities assumed$10,146 
Net assets acquired38,366 
Aggregate purchase price99,749 
Goodwill$61,383 
The fair value of assets acquired and liabilities assumed may change as additional information is obtained related to working capital and deferred income taxes during the measurement period. The Company expects to finalize the valuation as soon as practicable, but no later than one year from the acquisition date.
Goodwill is primarily attributable to expected synergies and acquired skilled workforce. The goodwill was allocated to the Company’s single reporting unit. The Company identified developed technology, customer relationships, and trademarks and tradenames as acquired intangible assets. The estimated fair value of these intangible assets was based on valuations using the income approach. The acquired goodwill and intangible assets are not deductible for tax purposes.
The fair value and estimated useful life for these intangible assets were as follows (in thousands, except years):
Fair ValueEstimated Useful Life
Developed technology$38,700 
7 years
Customer relationships3,400 
4 years
Trademarks and tradenames2,850 
10 years
Total intangible assets$44,950 
The operating results of Bindplane from the date of acquisition have been included in the Company’s condensed consolidated statements of operations. The revenue and net income attributable to Bindplane for the three months ended June 30, 2026 were not material.