Business Combinations

9 Months Ended

Sep. 30, 2021

Business Combination And Asset Acquisition [Abstract]

Business Combinations

5. Business combinations

S-FRAME

In August 2021, the Company acquired all of the outstanding capital stock of S-FRAME Software Inc. (“S-FRAME”), a structural analysis software platform used by engineers to evaluate a structure’s ability to withstand external loads (like wind, water, and snow) and meet design code requirements around the world. S-FRAME’s finite element structural analysis and code support complements the Company’s high-fidelity structural optimization solutions. S-FRAME is based in British Columbia, Canada and serves a global client base. The financial results of S-FRAME have been included in the Company’s consolidated financial statements since August 2021, the acquisition date.

The acquisition will be accounted for as a business combination under the acquisition method of accounting. As of September 30, 2021, the book value of assets acquired and liabilities assumed were reported in the Company’s consolidated balance sheet. The remaining purchase price has been recorded in goodwill in the consolidated balance sheet pending fair value allocation.

The preliminary estimated fair values of assets acquired and liabilities assumed, and identifiable intangible assets, are subject to change as additional information is received and the fair value allocation is finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The primary areas that remain preliminary relate to the fair value of intangible assets acquired, certain tangible assets and liabilities acquired, income taxes and residual goodwill.

Other

The allocation of fair value of purchase consideration for the Company’s 2020 acquisitions were finalized as of September 30, 2021. There were no changes to the preliminary fair value of assets acquired and liabilities assumed, as previously reported.