Summary
This filing is an amendment to Autodesk's 8-K report, detailing the acquisition of the remaining outstanding stock of Buzzsaw.com, Inc. Autodesk acquired Buzzsaw.com for $15.0 million in cash and assumed $13.3 million in liabilities. At the time of the acquisition on August 20, 2001, Autodesk already held a 40% interest in Buzzsaw.com. The filing includes the audited and unaudited financial statements of Buzzsaw.com, as well as pro forma combined financial statements reflecting the acquisition. These pro forma statements are presented for illustrative purposes and combine Autodesk's historical results with Buzzsaw.com's results to show the potential impact of the acquisition.
Key Highlights
- 1Autodesk acquired the remaining 60% of Buzzsaw.com, Inc. for $15.0 million cash and assumption of $13.3 million in liabilities.
- 2The acquisition occurred on August 20, 2001, with Autodesk already owning 40% of Buzzsaw.com.
- 3The filing provides detailed audited and unaudited financial statements for Buzzsaw.com.
- 4Unaudited pro forma financial statements are included to show the combined operating results and financial position as if the acquisition had occurred earlier.
- 5Buzzsaw.com, a development stage company, reported significant net losses for the six months ended June 30, 2001 ($26.3 million) and for the year ended December 31, 2000 ($50.9 million in pro forma combined results).
- 6Buzzsaw.com experienced substantial revenue growth, with net revenues of $4.4 million for the six months ended June 30, 2001, compared to $1.8 million in the prior year period.
- 7The pro forma combined statements indicate that the acquisition of Buzzsaw.com is expected to reduce overall profitability for the periods presented, though Autodesk management believes future operating losses for Buzzsaw.com will be significantly lower due to recent restructuring and cost-reduction efforts.
Frequently Asked Questions
Autodesk acquired the remaining outstanding stock of Buzzsaw.com for $15.0 million in cash and assumed $13.3 million in liabilities, totaling $28.3 million.
Buzzsaw.com was a separate entity prior to Autodesk acquiring the remaining stake. Its financial statements show its historical performance. The pro forma statements combine Autodesk's and Buzzsaw.com's financials to illustrate the potential financial impact of the acquisition on Autodesk's consolidated results.
Buzzsaw.com, described as a development stage company, incurred substantial net losses. For the six months ended June 30, 2001, it reported a net loss of $26.3 million on revenues of $4.4 million. The company also had a significant deficit accumulated during its development stage.
Negative goodwill arises when the fair value of acquired net assets exceeds the purchase price. In this case, the pro forma statements show negative goodwill of approximately $11.0 million. According to accounting standards, this negative goodwill is used to reduce the carrying values of the acquired company's long-lived assets to zero.