LOGM 2017 Annual Report

is greater than these warranty and indemnity limitations could have a negative impact on our financial condition. Some of the additional risks associated with integrating acquired companies may include, but are not limited to: • difficulties and delays integrating the employees, culture, technologies, products and systems of the acquired companies; • an uncertain revenue and earnings stream from the acquired company, which could dilute our earnings; • being subject to unfavorable revenue recognition or other accounting treatment as a result of an acquired company’s practices; • difficulties retaining the customers of any acquired business due to changes in management or otherwise; • our ongoing business may be disrupted and our management’s attention may be diverted by acquisition, transition or integration activities; • the potential loss of key employees of the acquired company; • undetected errors or unauthorized use of a third-party’s code in products of the acquired companies; • unforeseen or unanticipated legal liabilities which are not discovered by due diligence during the acquis- ition process, including stockholder litigation related to the acquisition, third party intellectual property claims or claims for potential violations of applicable law, rules and regulations, arising from prior or ongoing acts or omissions by the acquired businesses; • entry into markets in which we have no or limited direct prior experience and where competitors have stronger market positions and which are highly competitive; and • assuming pre-existing contractual relationships of an acquired company that we would not have otherwise entered into, the termination or modification of which may be costly or disruptive to our business. If we fail to successfully integrate and manage the companies and technologies we acquire, or if an acquisition does not further our business strategy as expected, our operating results will be adversely affected. Even if suc- cessfully integrated, there can be no assurance that any of our acquisitions or future acquisitions will be success- ful in helping us achieve our financial and strategic goals. The integration of the GoTo Business presents significant challenges. On January 31, 2017, we completed our acquisition of the GoTo family of service offerings, or the GoTo Busi- ness, from a wholly–owned subsidiary of Citrix Systems, Inc., or Citrix, via a Reverse Morris Trust transaction, which we refer to herein as the Merger. In connection with the Merger, there is a significant degree of difficulty inherent in the process of integrating the GoTo Business with our company. These difficulties include: • the integration of the GoTo Business with our current businesses while carrying on the ongoing oper- ations of all businesses; • managing a significantly larger company than before the consummation of the Merger; • coordinating geographically separate organizations; • integrating the business cultures of both companies, which may prove to be incompatible; • creating uniform standards, controls, procedures, policies and information systems and controlling the costs associated with such matters; • integrating certain information technology, purchasing, accounting, finance, sales, billing, human resources, payroll and regulatory compliance systems; and • the potential difficulty in retaining key officers and personnel. The process of integrating operations could cause an interruption of, or loss of momentum in, the activities in one or more of our businesses. Members of our senior management may be required to devote considerable amounts 13