Company: BL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001666134-25-000003
Chunk: 141

Company: BLACKLINE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 141
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 of $3.4 million during the year ended December 31, 2022. The transaction-related costs were expensed as incurred. The Company accounted for the transaction as a business combination using the acquisition method of accounting. The total purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. The purchase consideration and major classes of assets and liabilities to which the Company allocated the total fair value of purchase consideration of $214.2 million are considered final. The following table presents the final allocation of the purchase price (in thousands):Cash consideration$160,224 Post-acquisition working capital adjustment(635)Contingent consideration55,947 Less: One-time expense related to accelerated vesting(1,322)Purchase consideration$214,214 Cash and cash equivalents$1,164 Accounts receivable, net1,853 Prepaid expenses and other current assets410 Other assets143 Property and equipment659 Intangible assets74,400 Goodwill154,151 Accounts payable(1,537)Accrued liabilities (2,585)Deferred revenue(231)Deferred tax liabilities, net(14,213)Total consideration$214,214 The Company believes the amount of goodwill resulting from the acquisition is primarily attributable to increased offerings to customers, and enhanced opportunities for growth and innovation. The goodwill resulting from the acquisition is not tax deductible.To determine the estimated fair value of intangible assets acquired, the Company engaged a third-party valuation specialist to assist management. All estimates, key assumptions, and forecasts were either provided by, or reviewed by the Company. While the Company chose to utilize a third-party valuation specialist for assistance, the fair value analysis and related valuations reflect the conclusions of the Company and not those of any third party. The fair value measurements of the intangible assets were based primarily on significant unobservable inputs and thus represent a Level 3 measurement as defined in ASC 820. The acquired intangible asset categories, fair value, and amortization periods, were as follows:Amortization PeriodFair Value(in years)(in thousands)Developed technology7$64,900 Customer relationships39,500 $74,400 The weighted average lives of intangible assets at the acquisition date was 6.5 years.The identified intangible assets, developed technology and customer relationships, were valued as follows:Developed technology – The Company valued the finite-lived developed technology using the multi-period excess earnings model under