Net assets acquired

[Table of Contents](#ie5b53d08516744208c4d15ed88453ce2_7)The Company acquired all outstanding shares of Awake Security for a total purchase consideration of $180.5 million with cash. The acquisition-related costs were immaterial. Certain unvested stock options held by Awake Security employees were assumed by the Company in connection with the acquisition. The portion of the fair value of the assumed stock options associated with pre-acquisition services of Awake employees was immaterial. The fair value of $21.3 million of the unvested replacement options was excluded from the purchase price. These awards, which are subject to the recipients’ continued service with the Company, will be recognized ratably as stock-based compensation expense over the requisite service period.Both acquisitions were accounted for as a business combination with the aggregate purchase price allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The following table summarizes the final purchase price allocation for the two acquisitions (in thousands):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
|  |  | Amount |
| Cash and cash equivalents |  | $ | 21,051  |  |
| Other tangible assets |  | 19,580  |  |
| Liabilities |  | (28,598) |  |
| Intangible assets |  | 101,640  |  |
| Goodwill |  | 134,841  |  |
| Net assets acquired |  | $ | 248,514  |  |

The acquired intangible assets are amortized on a straight-line basis over their estimated useful lives, as we believe this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. The following table shows the valuation of the intangible assets acquired (in thousands) along with their weighted average estimated useful lives: 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Acquisition Date Fair Value |  | Weighted Average Estimated Useful Life |
| Developed technology  |  | $ | 72,220  |  |  | 7 years |
| Customer relationships |  | 18,840  |  |  | 7 years |
| Trade name  |  | 6,520  |  |  | 5 years |
| Others |  | 4,060  |  |  | 2 years |
| Total intangible assets acquired |  | $ | 101,640  |  |  |  |

The goodwill of $134.8 million is primarily attributable to the expected synergies created by incorporating the solutions of the acquired businesses into our technology platform, and the value of the assembled workforce. The goodwill is not deductible for income taxes purposes. The Company’s consolidated financial statements include the accounts of Big Switch and Awake Security starting as of the acquisition date. Pro forma and historical post-acquisition results of operations for these acquisitions were not material to the Company’s consolidated financial statements. 3.    Fair Value MeasurementsWe measure and report our cash equivalents, restricted cash, and available-for-sale marketable securities at fair value on a recurring basis. The following tables summarize the amortized costs, unrealized gains and losses, and fair values of these financial assets by significant investment category and their levels within the fair value hierarchy (in thousands):82
