Acquisition

6 Months Ended

Jul. 04, 2020

Acquisition

Acquisitions

6. Acquisition

Redpine Signals

On April 28, 2020, the Company acquired the Wi-Fi® and Bluetooth® business of Redpine Signals. The acquisition will accelerate the Company’s roadmap for Wi-Fi and Bluetooth silicon and software solutions. The purchase price was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. A portion of the goodwill is deductible for tax purposes. The purchase price was allocated as follows (in thousands):

			Weighted-Average
			Amortization Period
	Amount		(Years)
Intangible assets:
In-process research and development	$	11,753	Not amortized
Developed technology		61,674	8
Customer relationships		2,450	2
Trademarks		661	2
		76,538
Accounts receivable		1,395
Inventory		4,375
Other current assets		1,251
Goodwill		233,530
Other non-current assets		673
Current liabilities		(856)
Non-current liabilities		(97)
Total purchase price	$	316,809

In-process research and development (IPR&D) represents Wi-Fi and Bluetooth technology that had not achieved technological feasibility as of the acquisition date. The fair value of IPR&D was determined using the income approach. The discount rate applied to the projected cash flows was 13.8%, which reflects the risks related to the projects. The allocation of the purchase price is preliminary and subject to change, primarily for the valuation of consideration, intangible assets and the finalization of income tax matters.

Revenues attributable to the Redpine Signals business from the date of acquisition to July 4, 2020 were $2.4 million. Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported. The Company recorded approximately $1.5 million of acquisition-related costs in selling, general and administrative expenses during the six months ended July 4, 2020.