ACQUISITIONS

9 Months Ended

Sep. 30, 2021

ACQUISITIONS

ACQUISITIONS

NOTE 2.     ACQUISITIONS

Intangible Assets Acquired

In January 2021, we acquired certain intangible assets related to the manufacturing of fiber optic sensing equipment for $3.6 million in cash and an additional $2.9 million expected to be paid within one year of the closing date. These intangible assets have an estimated useful life of five years. See Note 12. Intangible Assets for additional details.

TEGAM, Inc.

On June 1, 2021, we acquired 100% of the issued and outstanding shares of capital stock of TEGAM, Inc., which is based in Geneva, Ohio. This acquisition added metrology and calibration instrumentation to Advanced Energy’s radio frequency (“RF”) process power solutions in our semiconductor and advanced industrial markets.

The components of the fair value of the total consideration transferred were as follows:

Cash paid for acquisition	$	15,552
Holdback		2,100
Total fair value of consideration transferred		17,652
Less cash acquired		(472)
Total purchase price	$	17,180

We are still evaluating the fair value for the assets acquired and liabilities assumed. Accordingly, the purchase price allocation presented below is preliminary.

	Preliminary Fair Value
Current assets and liabilities, net	$	3,870
Property and equipment		734
Operating lease right-of-use assets		425
Intangible assets		6,900
Goodwill		5,670
Other non-current assets		31
Total assets acquired		17,630
Other non-current liabilities		25
Operating lease liability		425
Total liabilities assumed		450
Total fair value of net assets acquired	$	17,180

Versatile Power, Inc.

On December 31, 2020, we acquired 100% of the issued and outstanding shares of capital stock of Versatile Power, Inc., which is based in Campbell, California. This acquisition added RF and programmable power supplies for medical and industrial applications to our product portfolio and further expands our presence in the medical market by adding proven technologies, deep customer relationships, expertise in medical design, and a medical-certified manufacturing center.

The components of the fair value of the total consideration transferred were as follows:

Cash paid for acquisition	$	4,654
Holdback		950
Contingent consideration		1,500
Total fair value of consideration transferred		7,104
Less cash acquired		(245)
Total purchase price	$	6,859

We are still evaluating the fair value for the assets acquired and liabilities assumed. Accordingly, the purchase price allocation presented below is preliminary.

	Preliminary Fair Value
Current assets and liabilities, net	$	1,013
Property and equipment		35
Operating lease right-of-use assets		463
Intangible assets		4,000
Goodwill		1,831
Total assets acquired		7,342
Other non-current liabilities		20
Operating lease liability		463
Total liabilities assumed		483
Total fair value of net assets acquired	$	6,859