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ACQUISITIONS
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
Business Combination Disclosure
ACQUISITIONS
KB Medical
On June 13, 2017, we acquired KB Medical SA (“KB Medical”), a Swiss-based robotic developer, to further bolster our development team, intellectual property, and product portfolio (the “KB Medical Acquisition”). We have included the financial results of KB Medical in our condensed consolidated financial statements from the acquisition date, and the results from KB Medical were not material to our condensed consolidated financial statements. We accounted for the KB Medical Acquisition under the purchase method of accounting. Amounts recognized for assets acquired and liabilities assumed are based on our purchase price allocations and on certain management judgments. These allocations are based on an analysis of the estimated fair values of assets acquired and liabilities assumed, including identifiable tangible assets, and estimates of the useful lives of tangible assets. The fair value of the consideration for the KB Medical Acquisition was approximately $31.5 million of cash paid at closing, plus a potential $4.9 million contingent consideration payment based on product development milestones. We recorded $20.2 million of identifiable net assets, based on their estimated fair values, and goodwill of $16.2 million. None of the goodwill is expected to be deductible for tax purposes.
As of June 30, 2018, the maximum aggregate undiscounted amount of contingent consideration potentially payable related to the KB Medical Acquisition is $5.0 million.
The table below represents the final purchase price allocation for the identifiable tangible and intangible assets and liabilities of KB Medical:
(In thousands)
 
Consideration:
 
Cash paid at closing
$
31,501

Purchase price contingent consideration
4,871

Fair value of consideration
$
36,372

 
 
Identifiable assets acquired and liabilities assumed:
 
Cash acquired
$
1,557

Prepaid and other current assets
168

Intangible assets, gross
24,500

Other assets
18

Accounts payable and accrued expenses
(1,312
)
Deferred tax liabilities
(4,727
)
Total identifiable net assets
20,204

 
 
Goodwill
16,168

Total allocated purchase price
$
36,372