cisco-annual-report-2021

4. Acquisitions and Divestitures
(a)
Acquisition Summary
We completed 13 acquisitions during fiscal 2021. A summary of the allocation of the total purchase consideration is presented
as follows (in millions):
Fiscal 2021
Purchase
Consideration
Net Tangible
Assets
Acquired
(Liabilities
Assumed)
Purchased
Intangible
Assets
Goodwill
Acacia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,983 $ 442 $ 2,160 $ 2,381
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,472 (130) 754 1,848
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,455 $ 312 $ 2,914 $ 4,229
On March 1, 2021, we completed our acquisition of Acacia Communications, Inc. (“Acacia”), a public fabless semiconductor
company that develops, manufactures and sells high-speed coherent optical interconnect products that are designed to transform
communications networks through improvements in performance, capacity and cost. Revenue from the Acacia acquisition has
been included in our Infrastructure Platforms product category.
The total purchase consideration related to our acquisitions completed during fiscal 2021 consisted of cash consideration and
vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately
$338 million.
Fiscal 2020 Acquisitions
Allocation of the purchase consideration for acquisitions completed in fiscal 2020 is summarized as follows (in millions):
Fiscal 2020
Purchase
Consideration
Net Tangible
Assets
Acquired
(Liabilities
Assumed)
Purchased
Intangible
Assets
Goodwill
Total acquisitions (six in total) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 359 $ (11) $ 172 $ 198
The total purchase consideration related to our acquisitions completed during fiscal 2020 consisted of cash consideration and
vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately
$23 million.
Fiscal 2019 Acquisitions
In fiscal 2019, we completed five acquisitions for total purchase consideration of $2.7 billion.
(b)
Other Acquisition and Divestiture Information
Total transaction costs related to our acquisition and divestiture activities during fiscal 2021, 2020, and 2019 were $46 million,
$21 million, and $21 million, respectively. These transaction costs were expensed as incurred in G&A expenses in the
Consolidated Statements of Operations.
The goodwill generated from our acquisitions completed during fiscal 2021 is primarily related to expected synergies. The
goodwill is generally not deductible for income tax purposes.
The Consolidated Financial Statements include the operating results of each acquisition from the date of acquisition. Pro forma
results of operations and the revenue and net income subsequent to the acquisition date for the acquisitions completed during
fiscal 2021, 2020, and 2019 have not been presented because the effects of the acquisitions, individually and in the aggregate,
were not material to our financial results.
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