Company: PCOR
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021898
Chunk: 26

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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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). 

14

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

The preliminary 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 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 forecasted revenue to be generated from the developed technology, an estimated royalty rate applicable to the technology, and a discount rate. Developed technology is amortized on a straight-line basis, which approximates the pattern in which the economic