Business Combination |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 02, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination | Business Combination 1touch Acquisition On May 7, 2026, we acquired all outstanding equity interests in 1touch, an innovator in data intelligence and orchestration that provides a comprehensive, unified view of enterprise information, for total cash consideration of $125.9 million. The transaction costs associated with the acquisition were not material and expensed as incurred. The preliminary purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date, primarily includes $19.5 million of intangible assets and $101.2 million of goodwill. Acquired Intangible Assets The following table sets forth the components of identifiable intangible assets acquired and their useful lives by major class of intangible assets as of the acquisition date (in thousands):
_________________________________ (1) In-progress research and development will be amortized over the estimated useful life once developments are complete. (2) Customer contract backlog represents the value of signed contracts for which services have not yet been performed or billed. To derive the fair value of acquired intangible assets, we applied the excess earnings method for customer relationships and customer contract backlog, and the relief-from-royalty method for developed technology and in-progress research and development. Goodwill generated from this acquisition is primarily attributable to the expected post-acquisition synergies from combining 1touch's data intelligence, orchestration, and data security posture management capabilities with our unified data platform. These synergies primarily relate to data discovery, classification, and governance across on-premises, cloud, and software-as-a-service environments, and to preparing data for use in artificial intelligence applications. The preliminary purchase price allocation includes the related impact to deferred tax asset and deferred tax liability that are subject to change upon finalizing its valuation analysis. This analysis is expected to be finalized within the measurement period not to exceed one year from the date of acquisition. Management expects that goodwill and identifiable intangible assets will be deductible for tax purposes. The financial results of 1touch have been included in our consolidated statements of operations since the acquisition date and are not material. Pro forma results of operations have not been presented because the acquisition was not material to our results of operations.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||