Symantec 2008 Annual Report Download - page 164

Note 4. Acquisitions
Altiris Purchase
On April 6, 2007, we completed the acquisition of Altiris Inc., a leading provider of information technology
management software that enables businesses to easily manage and service network-based endpoints. In exchange
for all of the voting equity interests of Altiris, we paid the following (in thousands):
Acquisition of common stock outstanding................................... $ 989,863
Fair value of stock options assumed ....................................... 16,847
Fair value of restricted stock awards....................................... 4,839
Acquisition related transaction costs ....................................... 4,348
Restructuring costs ................................................... 22,341
Total purchase price ................................................. $1,038,238
We believe this acquisition will enable us to help customers better manage and enforce security policies at the
endpoint, identify and protect against threats, and repair and service assets. The results of operations of Altiris are
included as part of the Security and Compliance segment. Pro forma disclosures of the financial results of Altiris
were not included as they were not deemed material.
The following table presents the purchase price allocation included on our Consolidated Balance Sheets:
Amount
(In thousands)
Net tangible assets
(1)
................................................. $ 237,608
Identifiable intangible assets:
Acquired product rights
(2)
............................................ 89,920
Other Intangible Assets
(3)
............................................ 216,446
Goodwill
(4)
........................................................ 633,233
Deferred tax liability ................................................. (138,969)
Total purchase price ................................................ $1,038,238
(1)
Net tangible assets include deferred revenue which was adjusted down from $46 million to $12 million
representing our estimate of the fair value of the contractual obligation assumed for support services.
(2)
Acquired product rights are amortized over their estimated useful lives of one to six years. The weighted-
average estimated useful lives were five years. Amounts are amortized to cost of revenues.
(3)
Other intangible assets are amortized over their estimated useful lives of three to eight years. The weighted-
average estimated useful lives were eight years. Amounts are amortized to operating expenses.
(4)
Goodwill is deductible in the state of California for tax purposes. The amount resulted primarily from our
expectation of synergies from the integration of Altiris product offerings with our product offerings.
Vontu Purchase
On November 30, 2007, we completed the acquisition of Vontu Inc. (“Vontu”), a provider of data loss
prevention solutions that assists organizations in preventing the loss of confidential or proprietary information. The
Vontu products are expected to enhance our endpoint and network security and storage and compliance solutions
offered to customers. In exchange for all the voting equity interests, we paid a total purchase price of $321 million,
which includes $14 million in assumed equity awards at fair value, $5 million in cash assumed and $4 million for
acquisition related transaction costs. On November 29, 2007, we borrowed $200 million under our five-year
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)