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Subsequent Events

6 Months Ended

Jun. 30, 2021

23. SUBSEQUENT EVENTS

Business Acquisitions—On July 1, 2021, the Company completed the business acquisition of Environmental Intelligence, LLC (“EI”) by acquiring 100.0% of its membership interests. EI is an environmental consulting company recognized for its innovative work in wildlife mitigation, biological assessments, and other environmental services. EI is based in Laguna Beach, CA and enhances our ecological planning and service capabilities in California and the US West Coast.

On August 2, 2021, the Company completed the business acquisition of SensibleIoT, LLC (“Sensible”) by acquiring 100.0% of its membership interests. Sensible is a technology platform that connects sensors and sources of environment data to a central, proprietary database that enables real-time client interaction. Sensible provides Montrose with an advanced ability to integrate environmental services and enhance environmental data analytics for clients.

These transactions qualified as an acquisition of a business and will be accounted for as a business combination. The following table summarizes the elements of the purchase price of these acquisitions:

					Other Purchase		Total
	Cash⁽¹⁾		Common Stock ⁽²⁾		Price Component ⁽³⁾		Purchase Price
EI	$	20,721	$	2,274	$	-	$	22,995
Sensible		6,500		1,000		5,500		13,000

(1)

The cash portion of these acquisitions’ purchase price was funded through cash on hand.

(2)

The common stock component was paid through the issuance of 43,100 and 19,638 shares of common stock for EI and Sensible, respectively.

(3)

The other purchase price component for EI consists of a potential working capital target payment, which is undetermined at this time. The other purchase price components of Sensible consist of an earn out that will be paid in common stock as targets are met, as well as, a potential working capital target payment, which is undetermined at this time.

The Company has not yet completed the initial purchase price allocation for these acquisitions, including obtaining all of the information required for the valuation of the acquired intangible assets, goodwill, assets and liabilities assumed, due to the timing of the close of the transaction.