Business Combinations

6 Months Ended

Mar. 31, 2022

6.	Business Combinations

On July 31, 2021, we acquired the BreathTek business, a urea breath test for the detection of

H. pylori

, from Otsuka America Pharmaceutical, Inc. Cash consideration totaled $19,585, subject to a $1,000

holdback, which is recorded in acquisition consideration on the Condensed Consolidated Balance Sheets, to secure the selling party’s performance of certain post-closing obligations that is payable 15 months following the BreathTek acquisition date. As part of the acquisition, we acquired BreathTek inventories and assumed the customer relationships to supply the BreathTek product in North America. Giving effect to purchase adjustments made during the three months ended March 31, 2022 to increase the value of acquired inventories by approximately $100, the acquired inventories and customer relationships were valued on July 31, 2021

on a preliminary basis,

9,955

and $

9,630

respectively, with the useful life of the customer relationships estimated at

five years

The Company’s consolidated results for the three and six

months

ended March 31, 2022 include approximately

$5,500

and $11,100, respectively, of net

revenues from BreathTek product sales, which contributed approximate

$1,600

and $3,200, respectively, of net earnings. These results, which are reported as part of the Diagnostics segment, include amortization expense related to the customer relationships recorded in the purchase price allocation totaling

$474

and $960, during the three and six months ended March 31, 2022, respectively.

The following table provides the unaudited consolidated pro forma results for the periods presented as if the BreathTek business had been acquired as of the beginning of fiscal 2021:


	Three Months Ended March 31,				Six Months Ended March 31,
	2022		2021		2022		2021
Net revenues	$	111,231	$	91,033	$	199,572	$	188,857
Net earnings		28,752		28,099		44,092		56,052