Business Combinations (Tables)

6 Months Ended

Jun. 30, 2017

Summary of Pro Forma Financial Information

The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisition had taken place on January 1, 2016.

	Three Months Ended				Six Months Ended
	June 30,		July 1,		June 30,		July 1,
	2017		2016		2017		2016
Revenue	$	119,102	$	102,118	$	228,842	$	199,133
Income from continuing operations	$	10,359	$	3,127	$	18,376	$	5,384
Earnings per share from continuing operations - Basic	$	0.17	$	0.10	$	0.40	$	0.16
Earnings per share from continuing operations - Diluted	$	0.17	$	0.10	$	0.40	$	0.16

Summary of Acquisition Related Costs

Acquisition-related costs are included in restructuring, acquisition and divestiture related costs in the consolidated statements of operations. Acquisition-related costs for ThingMagic and Laser Quantum are as follows (in thousands):

	Six Months Ended
	June 30,
	2017
ThingMagic	$	149
Laser Quantum	$	264

Thing Magic

Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation

Based upon a preliminary valuation, the total purchase price allocation is as follows (in thousands):

	Purchase Price
	Allocation
Inventory	$	1,832
Intangible assets		7,423
Goodwill		9,929
Total assets acquired		19,184

Other liabilities		95
Total liabilities assumed		95
Total purchase price	$	19,089

Fair Value of Intangible Assets

The fair value of intangible assets is comprised of the following (dollar amounts in thousands):

			Weighted Average
	Estimated Fair		Amortization
	Value		Period
Developed technologies	$	4,600	10 years
Customer relationships		2,520	10 years
Trademarks and trade names		303	5 years
Total	$	7,423

Laser Quantum

Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation

Based upon a preliminary valuation, the total purchase price was allocated as follows (in thousands):

	Purchase Price
	Allocation
Cash	$	15,343
Accounts receivable		2,739
Inventory		6,332
Property and equipment		1,700
Intangible assets		38,955
Goodwill		31,459
Other assets		717
Total fair value of assets		97,245

Accounts payable		796
Other liabilities		2,068
Deferred tax liabilities		7,110
Total fair value of liabilities		9,974
Total fair value of assets, net of fair value of liabilities		87,271
Less: fair value of equity interest previously held by Novanta		34,637
Less: fair value of noncontrolling interest		21,582
Total purchase price paid by Novanta		31,052
Less: cash acquired		15,343
Purchase price, net of cash acquired	$	15,709

Fair Value of Intangible Assets

The fair value of intangible assets is comprised of the following (dollar amounts in thousands):

			Weighted Average
	Estimated Fair		Amortization
	Value		Period
Developed technologies	$	15,501	15 years
Customer relationships		19,990	15 years
Trademarks and trade names		1,964	15 years
Backlog		1,500	9 months
Total	$	38,955