Company: BL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001666134-25-000003
Chunk: 139

Company: BLACKLINE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 139
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 translation(171)(58)(304)Adjustment to redeemable non-controlling interest4,639 5,334 (4,131)Balance at end of period$36,483 $30,063 $23,895 

Note 5 – Business Combinations 

Acquisition of Data InterconnectOn September 12, 2023, the Company completed the DI Acquisition for cash consideration of $11.4 million, which was paid at the closing of the acquisition. The DI Acquisition enhances the Company's existing accounts receivable automation solution capabilities through EIPP. Transaction-related costs, which include, but are not limited to, accounting, legal, and advisory fees related to the transaction, incurred by the Company totaling approximately $1.2 million were expensed as incurred during the year ended December 31, 2023. 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 price allocation was finalized as of the filing date of the Annual Report on Form 10-K for the year ended December 31, 2023.The purchase consideration and major classes of assets and liabilities to which the Company allocated the total fair value of purchase consideration of $11.4 million were as follows (in thousands):

78

Cash consideration$11,394 Post-acquisition working capital adjustment9 Total cash purchase consideration$11,403 Cash and cash equivalents$27 Accounts receivable, net916 Prepaid expenses and other current assets893 Property and equipment, net49 Intangible assets, net8,800 Goodwill5,104 Operating lease right-of-use assets402 Other assets58 Accounts payable(665)Accrued expenses and other current liabilities(1,570)Deferred revenue, current(98)Operating lease liabilities(402)Deferred tax liabilities, net(2,111)Total consideration$11,403 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