This excerpt taken from the RVBD 10-Q filed Apr 30, 2009.
Acquisition of Mazu
On February 19, 2009, we acquired 100% of Mazu Networks, Inc. We made an initial payment totaling $23.1 million in cash; and potentially will make additional payments totaling up to $22.0 million in cash based on achievement of certain bookings targets for the one-year period from April 1, 2009 through March 31, 2010. An initial estimate of the fair value of the acquisition-related contingent consideration of $9.9 million was included in the purchase price of Mazu. Any change in the estimated fair value of the acquisition-related contingent consideration will be recognized in earnings in the period of the change in estimate.
The results of operations of Mazu are included in our consolidated results for the period subsequent to the acquisition date of February 19, 2009. No prior periods have been restated. In the quarter ended March 31, 2009 we recognized $0.5 million in revenue from Mazu products and services, recorded $1.5 million in operating expenses and added 62 former Mazu employees.
The following table summarizes the amortization of intangibles recognized in the three months ended March 31, 2009 and 2008:
The following table summarizes the acquisition-related costs, including the acquisition-related contingent consideration to be paid to the former Mazu employees, recognized in the three months ended March 31, 2009 and 2008: