Company: PCOR
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050149
Chunk: 33

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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Total$511,693 $257,194 $768,887 

5.BUSINESS COMBINATIONS

NovorenderOn January 28, 2025, the Company completed the acquisition of all outstanding equity of Novorender AS (“Novorender”), a Norway-based leader in advanced building informational modeling rendering technology, to enhance Procore’s capabilities for large-scale construction projects. The purchase price was $44.3 million in total cash consideration. Of the consideration transferred, $43.2 million was considered purchase consideration. $1.1 million of the cash consideration relates to the acceleration of options vesting for certain Novorender option holders, and was excluded from purchase consideration and recorded to compensation expense in the accompanying condensed consolidated statements of operations and comprehensive loss on the acquisition date. On the acquisition date, $5.0 million in cash was placed in an escrow account held by a third-party escrow agent for potential breaches of representations, warranties, and indemnities and is scheduled to be released from escrow to Novorender’s stockholders 24 months after the acquisition date (subject to any indemnification claims). 

16

Table of ContentsProcore Technologies, Inc.Notes to Condensed Consolidated Financial Statements (unaudited)

The purchase consideration was allocated to the following assets and liabilities at the acquisition date (in thousands):Fair ValueUseful LifeAssets acquiredCash and cash equivalents$1,931 Accounts receivable272 Prepaid expenses and other current assets379 Other non-current assets2 Developed technology intangible asset19,100 7 yearsCustomer relationships intangible asset4,900 10 yearsGoodwill23,706 Total assets acquired$50,290 Liabilities assumedAccounts payable$(250)Deferred revenue, current(590)Other current liabilities(214)Accrued expenses(1,687)Net deferred tax liabilities(4,366)Total liabilities assumed$(7,107)Net assets acquired$43,183 During the nine months ended September 30, 2025, the Company recorded a measurement period adjustment which did not have a material impact on goodwill. The purchase price accounting for this acquisition is final. Developed technology intangible asset represents the fair value of Novorender’s technology, which was valued considering both the cost to rebuild and relief from royalty methods. Key assumptions under the cost to rebuild method include the estimated level of effort and related costs of reproducing or replacing the acquired technology. Key assumptions under the relief from royalty method include