Acquisition

9 Months Ended

Oct. 03, 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.

Revenues attributable to the Redpine Signals business from the date of acquisition to October 3, 2020 were $5.8 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 nine months ended October 3, 2020.