We periodically complete business combinations that align with our business strategy. Acquisitions are accounted for using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at fair value as of the acquisition date and that the results of operations of each acquired business be included in our consolidated statements of comprehensive income from their respective dates of acquisition. Acquisition costs are recorded in selling, general and administrative expenses as incurred.

 

On the Company acquired the stock of Trevigen Inc. for approximately million, net of cash received. The Company has had a long-standing business relationship with Trevigen as a distributor of its product line. The goodwill recorded as a result of the acquisition represents the strategic benefits of growing the Company’s product portfolio and the expected revenue growth from increased market penetration. The goodwill is deductible for income tax purposes. The business became part of the Biotechnology reportable segment in the quarter of fiscal

 

Certain estimated fair values are yet finalized and are subject to change, which could be significant. The Company expects to finalize these during the quarter of fiscal year when our valuation models for acquired intangible assets are completed, including the determination of related estimated useful lives. Amounts for acquired inventory, intangible assets, and related deferred tax liabilities, and goodwill remain subject to change. The preliminary estimated fair values of the assets acquired and liabilities assumed are as follows (in thousands):

 

		Preliminary Allocation at Acquisition Date				Adjustments to Fair Value				Updated Opening Balance Sheet Allocation at March 31 , 2018
Current assets, net of cash		$	1,662							$	1,662
Equipment and other long-term assets			154				(101	)			53
Intangible assets:
Developed technology			3,800				1,300				5,100
Trade name			1,400				(1,240	)			160
Customer relationships			1,900				(1,640	)			260
Goodwill			4,595				1,396				5,991
Total assets acquired			13,511				(285	)			13,226
Liabilities			92				295				387
Deferred income taxes, net			2,785				(590	)			2,195
Net assets acquired		$	10,634				10			$	10,644
Cash paid, net of cash acquired		$	10,634				10			$	10,644

 

As summarized in the table, there have been adjustments totaling million to goodwill during the measurement period. These adjustments primarily relate to refinements made to acquired intangible asset cash flow models, and updates to opening balance sheet deferred tax assets and liabilities upon completion of the pre-acquisition income tax return.

 

Tangible assets acquired, net of liabilities assumed, were recorded at fair value on the date of close based on management's assessment. The purchase price allocated to developed technology, trade names, and customer relationships was based on management's forecasted cash inflows and outflows and using a relief-from-royalty and a multi-period excess earnings method to calculate the fair value of assets purchased. The developed technology is being amortized with the expense reflected in cost of goods sold in the Condensed Consolidated Statement of Earnings and Comprehensive Income. Amortization expense related to trade names, and customer relationships is reflected in selling, general and administrative expenses in the Consolidated Statement of Earnings and Comprehensive Income. The preliminary amortization periods for intangible assets acquired in fiscal are estimated to be years for developed technology, years for customer relationships, and years for trade names. The deferred income tax liability represents the net amount of the estimated future impact of adjustments for costs to be recognized upon the sale of acquired inventory that was written up to fair value and intangible asset amortization, both of which are deductible for income tax purposes.

 

On Bio-Techne acquired Atlanta Biologicals, Inc. and its affiliated company, Scientific Ventures, Inc., for approximately million, net of cash acquired. The transaction was financed through available cash on hand and an additional draw from the Company’s line-of-credit. Atlanta Biologicals fetal bovine serum (FBS) product line strengthens and complements our current tissue culture reagents offering and furthers our efforts to provide more complete solutions to our research customers. The goodwill recorded as a result of the acquisition represents the strategic benefits of growing the Company’s product portfolio and the expected revenue growth from increased market penetration. The goodwill is deductible for income tax purposes. The business became part of the Biotechnology reportable segment in the quarter of fiscal

 

Certain estimated fair values are yet finalized and are subject to change, which could be significant. The Company expects to finalize these during the quarter of fiscal year when our valuation models for acquired intangible assets are completed, including the determination of related estimated useful lives. Amounts for acquired inventory, fixed assets, intangible assets, and related deferred tax liabilities, and goodwill remain subject to change. The preliminary estimated fair values of the assets acquired and liabilities assumed are as follows (in thousands):

 

		Preliminary Allocation at Acquisition Date
Current assets, net of cash		$	18,678
Equipment and other long-term assets			4,348
Intangible assets:
Developed technology			9,000
Trade name			1,000
Customer relationships			1,500
Goodwill			21,695
Total assets acquired			56,221
Liabilities			90
Deferred income taxes, net			4,845
Net assets acquired		$	51,286
Cash paid, net of cash acquired		$	51,286

 

Tangible assets acquired, net of liabilities assumed, were recorded at fair value on the date of close based on management's assessment. The purchase price allocated to developed technology, trade names, and customer relationships was based on management's forecasted cash inflows and outflows and using a relief-from-royalty and a multi-period excess earnings method to calculate the fair value of assets purchased. The developed technology is being amortized with the expense reflected in cost of goods sold in the Condensed Consolidated Statement of Earnings and Comprehensive Income. Amortization expense related to trade names, and customer relationships is reflected in selling, general and administrative expenses in the Consolidated Statement of Earnings and Comprehensive Income. The preliminary amortization periods for intangible assets acquired in fiscal are estimated to be years for developed technology, years for customer relationships, and years for trade names. The deferred income tax liability represents the net amount of the estimated future impact of adjustments for costs to be recognized upon the sale of acquired inventory that was written up to fair value and intangible asset amortization, both of which are deductible for income tax purposes.

 

 

On Bio-Techne acquired Eurocell Diagnostics SAS a company based in Rennes, France for approximately million, net of cash acquired.  million was paid on the acquisition date and the remaining million will be paid on The Company has had a long-standing business relationship with Eurocell as a distributor of its product line. Eurocell sells directly to the laboratory markets in the French region as well as servicing the EMEA markets via a network of distributors. The transaction was financed through cash on hand.  The primary asset in this acquisition is the customer relationships, however, the acquisition resulted in some goodwill as we expect strategic benefits of revenue growth from increased market penetration. The goodwill is deductible for income tax purposes. The business became part of the Company’s Diagnostics reportable segment in the quarter of fiscal

 

Certain estimated fair values are yet finalized and are subject to change, which could be significant. The Company expects to finalize these during fiscal year when our valuation models for acquired intangible assets are completed, including the determination of related estimated useful lives. Amounts for acquired inventory, intangible assets, and related deferred tax liabilities, and goodwill remain subject to change. The preliminary estimated fair values of the assets acquired and liabilities assumed are as follows (in thousands):

		Preliminary Allocation at Acquisition Date
Current assets, net of cash		$	512
Equipment and other long-term assets			188
Intangible assets:
Customer relationships			6,272
Goodwill			113
Total assets acquired			7,085
Liabilities			483
Deferred income taxes, net			2,070
Net assets acquired		$	4,532
Cash paid, net of cash acquired		$	3,136
Consideration payable		$	1,396

Tangible assets acquired, net of liabilities assumed, were recorded at fair value on the date of close based on management's assessment. The purchase price allocated to customer relationships was based on management's forecasted cash inflows and outflows using a multi-period excess earnings method to calculate the fair value of assets purchased. Amortization expense related customer relationships is reflected in selling, general and administrative expenses in the Consolidated Statement of Earnings and Comprehensive Income. The preliminary amortization period for customer relationships acquired in fiscal  is estimated to be years. The deferred income tax liability represents the net amount of the estimated future impact of intangible asset amortization, which is deductible for income tax purposes.