Acquisitions of and Investments in Businesses and Technologies

3 Months Ended

Apr. 30, 2015

Business Combinations [Abstract]

Acquisitions of and Investments in Businesses and Technologies

ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES AND TECHNOLOGIES

Integra

Related to the fourth quarter fiscal 2015 acquisition of Integra Plastics, Inc. (Integra), the Company received $351 in settlement of the working capital adjustment to the purchase price and finalized deferred tax calculations in fiscal 2016 first quarter. These transactions resulted in an adjustment of about $20 to the purchase price allocation. As of as April 30, 2015, the purchase price valuation was $48,262 with fair value of goodwill of $27,422. None of this goodwill is tax deductible.

Acquisition-related contingent consideration

The Company has contingent liabilities related to prior year acquisitions of SBG Innovatie BV and its affiliate, Navtronics BVBA (collectively, SBG) in May 2014 and Vista in 2012 . In connection with the acquisition of SBG, Raven is committed to making additional earn-out payments, not to exceed $2,500, calculated and paid quarterly for ten years after the purchase date contingent upon achieving certain revenues. The fair value of this contingent consideration was $1,410, of which $287 was classified as "Accrued liabilities" and $1,123 was classified as "Other liabilities" in the Consolidated Balance Sheet for the period ended April 30, 2015. The Company paid $29 in earn-out payments in the three months ended April 30, 2015.

Related to the acquisition of Vista Research, Inc. (Vista) in 2012, the Company is committed to making annual payments based upon earn-out percentages on specific revenue streams for seven years after the purchase date, not to exceed $15,000. The fair value of this contingent consideration, estimated using forecasted discounted cash flows, is presented in the Consolidated Balance Sheets for the period ended April 30, 2015 and 2014, respectively. At April 30, 2015 the fair value of this contingent consideration was $2,571, of which $648 was classified in "Accrued liabilities" and $1,923 as "Other liabilities". At April 30, 2014, the fair value of this contingent consideration was $2,594, of which $538 was classified as "Accrued liabilities" and $2,056 as "Other liabilities". The Company paid $585 and $454 in the three-month periods ended April 30, 2015 and 2014, respectively.