v3.26.3
ACQUISITIONS AND DIVESTITURES
 3 Months Ended
Sep. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS AND DIVESTITURES ACQUISITIONS AND DIVESTITURES
Divestiture of Vertica Business
On May 11, 2026, the Company completed the sale of its Vertica business to Rocket Software, for $150.0 million in cash before taxes, fees and other adjustments. The results of the Vertica business were recorded and presented within our Condensed Consolidated and Consolidated Financial Statements during Fiscal 2026 from July 1, 2025 through May 11, 2026. In connection with the sale, a gain of $11.6 million was recorded in Other income (expense), net within our Consolidated Financial Statements for the year ended June 30, 2026.
The Company has determined that the Vertica business does not constitute a component, as its operations and cash flows cannot be clearly distinguished from the rest of the Company’s operations and cash flows due to significant shared costs, therefore, the transaction does not meet the discontinued operations criteria, and the results of operations from the Vertica business are presented within Income from operations in our Condensed Consolidated Statements of Income.
The Company used the proceeds from the transaction to prepay $150.0 million of the outstanding principal balance of the Acquisition Term Loan. The Company has also agreed to provide certain transition services to Rocket Software following completion of the divestiture for up to 12 months, with optional extensions for up to an additional six months, which are included in financing activities on the Condensed Consolidated Statements of Cash Flows. These transition service costs are reimbursable by Rocket Software. For the three months ended September 30, 2026, we billed Rocket Software $1.4 million under a transition services agreement (TSA).
The following table presents the carrying amounts of major classes of assets and liabilities disposed of in the Vertica divestiture on May 11, 2026:
Assets
Accounts receivable trade, net of allowance for credit losses$14,527 
Contract assets5,771 
Prepaid expenses and other current assets278 
Property and equipment1,209 
Operating lease right of use assets13 
Long-term contract assets3,756 
Goodwill102,323 
Acquired intangible assets38,338 
Other assets823 
Total Assets held for sale$167,038 
Liabilities
Accounts payable and accrued liabilities$527 
Deferred revenues19,388 
Pension liability, net384 
Long-term operating lease liabilities3 
Long-term deferred revenues4,538 
Deferred tax liabilities4,781 
Total Liabilities held for sale$29,621 
Divestiture of eDOCS Business
On January 12, 2026, the Company completed the sale of its eDOCS business to NetDocuments Software, Inc. (NetDocuments), for $163.0 million in cash before taxes, fees and other adjustments. The results of the eDOCS business were recorded and presented within our Condensed Consolidated and Consolidated Financial Statements during Fiscal 2026 from July 1, 2025 through January 11, 2026. In connection with the sale, a gain of $64.5 million including working capital adjustments was recorded in Other income (expense), net within our Consolidated Statements of Income for the year ended June 30, 2026.
The Company determined that the eDOCS business does not constitute a component, as its operations and cash flows cannot be clearly distinguished from the rest of the Company’s operations and cash flows due to significant shared costs; therefore, the transaction does not meet the discontinued operations criteria, and the results of operations from the eDOCS business are presented within Income from operations in our Condensed Consolidated Statements of Income.
The Company used the proceeds from the transaction to prepay $163.0 million of the outstanding principal balance of the Acquisition Term Loan. The Company has also agreed to provide certain transition services to NetDocuments following completion of the divestiture for up to 12 months, which are included in financing activities on the Condensed Consolidated Statements of Cash Flows. These transition service costs are reimbursable by NetDocuments. For the three months ended September 30, 2026, we billed NetDocuments $0.5 million under a TSA.
The following table presents the carrying amounts of major classes of assets and liabilities disposed of in the eDOCS divestiture on January 12, 2026:
Assets
Accounts receivable trade, net of allowance for credit losses$4,755 
Prepaid expenses and other current assets51 
Property and equipment
24 
Goodwill91,913 
Long-term deferred tax assets
17,735 
Total Assets $114,478 
Liabilities
Accounts payable and accrued liabilities$224 
Deferred revenues15,595 
Pension liability, net91 
Total Liabilities $15,910