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Acquisition of Spinal Kinetics, Inc. (Tables)
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Schedule of Acquisition Date Fair Value of Consideration Transferred

The acquisition date fair value of the consideration transferred was $76.1 million, which consisted of the following:

 

(U.S. Dollars, in thousands)

 

 

 

 

Fair value of consideration transferred

 

 

 

 

Cash paid

 

$

50,564

 

Contingent consideration

 

 

25,491

 

Total fair value of consideration transferred

 

$

76,055

 

 

Summary of Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date. A final determination of the allocation of the purchase price to assets acquired and liabilities assumed has not been made and the following should be considered preliminary. The final determination is subject to completion of the Company’s valuation of the assets acquired and liabilities assumed, which it expects to complete within one year of the acquisition date.

 

(U.S. Dollars, in thousands)

 

As of April 30, 2018

 

 

Assigned Useful Life

Assets acquired

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,785

 

 

 

Restricted cash

 

 

30

 

 

 

Accounts receivable

 

 

1,705

 

 

 

Inventories

 

 

8,175

 

 

 

Prepaid expenses and other current assets

 

 

315

 

 

 

Property, plant and equipment

 

 

2,285

 

 

 

Other long-term assets

 

 

320

 

 

 

Developed technology

 

 

12,400

 

 

10 years

In-process research and development ("IPR&D")

 

 

26,800

 

 

Indefinite

Tradename

 

 

100

 

 

2 years

Deferred income taxes

 

 

3,483

 

 

 

Total identifiable assets acquired

 

$

62,398

 

 

 

 

 

 

 

 

 

 

Liabilities assumed

 

 

 

 

 

 

Accounts payable

 

$

351

 

 

 

Other current liabilities

 

 

2,873

 

 

 

Other long-term liabilities

 

 

301

 

 

 

Total liabilities assumed

 

 

3,525

 

 

 

Goodwill

 

 

17,182

 

 

 

Total fair value of consideration transferred

 

$

76,055

 

 

 

Summary of Unaudited Pro forma Results The following table presents the unaudited pro forma results for the three and nine months ended September 30, 2018 and 2017,

 

 

 

Three Months Ended  September 30,

 

 

Nine Months Ended September 30,

 

(U.S. Dollars, in thousands)

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

Net sales

 

$

111,708

 

 

$

109,019

 

 

$

336,882

 

 

$

328,182

 

Net income from continuing operations

 

 

78

 

 

 

1,415

 

 

 

7,055

 

 

 

448