Note 2 - Subsequent Events

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Subsequent Events [Text Block]

2. Subsequent Events

On

January

4,

2017,

we completed the acquisition of all of the outstanding share capital of Kita Manufacturing Co., LTD. and Kita USA, Inc. (together “Kita”) (the “Acquisition”), pursuant to a Share Purchase Agreement dated

November

15,

2016,

by and among Kita and its shareholders, Rasco GmbH, a wholly owned subsidiary of the Company and Cohu (the “Purchase Agreement”). Kita, headquartered in Osaka, Japan, and with operations in Attleboro, Massachusetts and Kyoto, Japan, designs, manufactures and sells spring probe contacts used in final test contactors, probe cards, PCB test boards and connectors sold to customers worldwide. The aggregate purchase price was approximately

$21.1

 million, comprised of an initial cash payment of

$15.0

 million and the assumption of operating and expansion debt totaling approximately

$6.1

million, net of cash acquired. To the extent actual working capital and net debt as of the closing is later determined to be different than the estimates, the purchase price will be adjusted accordingly. The Purchase Agreement also provides for up to

$3.0

 million of contingent earn-out cash payments based on certain growth targets for revenue and profitability. In connection with the Acquisition, we incurred approximately

$1.8

 million in acquisition related costs, which were expensed as selling, general and administrative costs during the year ended

December

31,

2016.