Note 19 - Subsequent Events - Business Combinations

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

20.

Subsequent Events - Other

On

January 29, 2020,

the Company announced the unexpected death of its former President and Chief Executive Officer, Joseph Darling. According to the terms of Mr. Darling’s equity award grants and the

2017

Plan, an unvested portion of his stock-based compensation was forfeited upon his death, which was accounted for in the

first

quarter of

2020.

Dr. Cheryl Blanchard, a member of the Board of Directors, has been named Interim Chief Executive Officer.

Acquisitions of Parcus Medical and Arthrosurface [Member]

Notes to Financial Statements

Subsequent Events [Text Block]

19.

Subsequent Events - Business Combinations

Parcus Medical Acquisition

On

January 4, 2020,

Anika entered into an agreement to acquire all outstanding equity of Parcus Medical, a sports medicine implant and instrumentation solutions provider focused on surgical repair and reconstruction of ligaments and tendons. On

January 24, 2020,

the acquisition was completed and Parcus Medical became a wholly-owned subsidiary of the Company.

The preliminary estimated total purchase consideration is approximately

$76.2

million, which consists of

$32.6

million of cash paid at closing, deferred consideration of

$1.9

million, and

$41.7

million for the acquisition date estimated fair value of future cash payment of contingent consideration. The estimated purchase consideration and allocation is preliminary as the acquisition was recently completed. Based on information available at this date, the Company expects to recognize approximately

$49.0

million in intangible assets and approximately

$15.0

million in goodwill.

Arthrosurface Acquisition

On

January 4, 2020,

Anika entered into an agreement to acquire all outstanding equity of Arthrosurface, a joint preservation technology company specializing in less invasive, bone preserving partial and total joint replacement solutions. On

February 3, 2020,

the acquisition was completed and Arthrosurface became a wholly-owned subsidiary of the Company.

The preliminary estimated total purchase consideration is approximately

$89.6

million, which consists of

$61.2

million of cash paid at closing and

$28.4

million for the acquisition date estimated fair value of future cash payment of contingent consideration. The estimated purchase consideration and allocation is preliminary as the acquisition was recently completed. Based on information available at this date, the Company expects to recognize approximately

$52.0

million in intangible assets and approximately

$21.0

million in goodwill.