Acquisitions

9 Months Ended

Oct. 02, 2016

Business Combinations [Abstract]

Acquisitions

Acquisitions

AQSense, S.L.

On August 30, 2016, the Company acquired selected assets and assumed selected liabilities of AQSense, S.L., a privately-held 3D machine vision software provider based in Spain. This transaction has been accounted for as a business combination. The Company paid €2,200,000($2,483,000) in cash upon closing. There are no contingent payments. The purchase price was subject to a working capital adjustment of €32,000($36,000), which was paid in October 2016, thereby increasing the purchase price to €2,232,000($2,519,000).

Under this transaction, in addition to customer relationships and completed technology, the Company acquired a 3D vision tool library and a team of software engineers that are expected to help the Company accelerate the development of future 3D vision products. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date.

The purchase price was allocated as follows (in thousands):

Accounts receivable	$	168
Customer relationships	598
Completed technology	384
Goodwill	1,383
Accrued expenses	(14		)
Purchase price	$	2,519

The customer relationships and completed technology are included in "intangible assets" on the Consolidated Balance Sheet. The customer relationships will be amortized to selling, general and administrative expenses, and the completed technology will be amortized to cost of revenue, both on a straight-line basis over five years. The acquired goodwill is not deductible for tax purposes. Transaction costs were immaterial and were expensed as incurred.

EnShape GmbH

On October 27, 2016, the Company acquired all of the outstanding shares of EnShape GmbH, a privately-held developer of 3D sensors based in Germany, for a purchase price of €7,000,000.

Given the timing of the acquisition, the Company is in the process of completing the purchase price allocation, which will be recorded in the fourth quarter of 2016. Transaction costs are immaterial and are being expensed as incurred.

Pro-forma information for these acquisitions has not been presented because they are not material, either individually or in the aggregate.