Company: CVLT
Filing Date: 2025-01-29
Form Type: 10-Q
Source: 0001169561-25-000007
Chunk: 44

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-01-29
Form: 10-Q
Item: Item 8
Chunk 44
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 enhance our product and service offerings in the cyber resiliency market. None of the goodwill recorded is expected to be deductible for income tax purposes.During the three and nine months ended December 31, 2024, we incurred costs related to the acquisition of Appranix of approximately $101 and $679, respectively, which were included in general and administrative expenses. The following table summarizes the purchase price and preliminary purchase price allocation as of the date of acquisition:Purchase price allocation:Cash consideration$21,032 Fair value of unregistered restricted stock units4,900 Fair value of contingent consideration340 Total purchase price$26,272 Assets acquired and liabilities assumed:Cash$32 Trade accounts receivable239 Developed technology5,300 Accrued liabilities(36)Deferred revenue(98)Deferred tax liability(1,457)Total identifiable net assets acquired and liabilities assumed3,980 Goodwill22,292 Total purchase price$26,272 The purchase price allocation is preliminary as it relates to the valuation of income taxes. The amounts recognized will be finalized as the information necessary to complete the analysis is obtained, but no later than one year after the acquisition date.Contingent ConsiderationThe contingent consideration arrangement requires us to pay up to $4,000 in cash to the former owner of Appranix, contingent upon the achievement of certain financial metrics measured on December 31, 2024 and June 30, 2025. The actual consideration can range from $0 to $4,000. The fair value of the contingent liability on the acquisition date was estimated to be $340 using a Monte Carlo simulation model and is included in accrued liabilities on the consolidated balance sheets. At the end of each reporting period after the acquisition date, the arrangement is remeasured at its fair value, with changes in fair value recorded through the consolidated statements of operations as operating expenses. As of December 31, 2024, we estimate the fair value of the liability at $2,826 and have recorded $2,486 in operating expenses during the third quarter of fiscal 2025 related to changes in the estimated fair value.

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Table of Contents      Commvault Systems, Inc.Notes to Consolidated Financial Statements - Unaudited (continued)(In thousands, except per share data)

Clumio, Inc. AcquisitionOn October 1, 2024, we completed the acquisition of certain assets of Clumio, Inc. ("Clumio"), a California-based data