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 the results of operations of each acquired business are 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 QT Holdings Corporation (Quad) for approximately million, net of cash acquired, plus contingent consideration of up to million, subject to certain product development milestones and revenue thresholds. 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 Protein Sciences 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 by the end of the quarter of fiscal year when we have completed our assessment of the working capital adjustment, our valuation models for acquired intangible assets are completed, including the determination of related estimated useful lives and we have finalized our income tax assessment of acquired net operating losses (NOLs). Amounts for acquired current assets and liabilities, intangible assets and related deferred tax liabilities, acquired NOLs, and goodwill also 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		$	36
Equipment and other long-term assets			284
Intangible assets:
Developed technology			20,000
Goodwill			9,790
Total assets acquired			30,110
Liabilities			765
Deferred income taxes, net			3,741
Net assets acquired		$	25,604
Cash paid, net of cash acquired		$	20,404
Fair value of contingent consideration			5,200
Net assets acquired		$	25,604

 

Tangible assets and liabilities acquired were recorded at fair value on the date of close based on management's assessment. The purchase price allocated to developed technology was estimated based on management's forecasted cash inflows and outflows and using a multi-period excess earnings method to calculate the fair value of assets purchased. The preliminary amount recorded for developed technology is being amortized with the expense reflected in cost of goods sold in the Condensed 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. The net deferred income tax liability represents the net amount of the estimated future impact of adjustments for costs to be recognized as intangible asset amortization, which is deductible for income tax purposes offset by the deferred tax asset for the preliminary calculation of acquired NOLs.

On the Company acquired Exosome Diagnostics, Inc. (ExosomeDx) for approximately million, net of cash acquired, plus contingent consideration of up to million as follows:

 

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 Diagnostics and Genomics 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 by the end of quarter of fiscal year when we have completed our assessment of the working capital adjustment, completed our valuation models for acquired intangible assets, including the finalization of the long-term plan for the use of the ExosomeDx trade name and the determination of related estimated useful lives, and we have finalized our income tax assessment of acquired net operating losses (NOLs). Amounts for acquired current assets and liabilities, intangible assets, related deferred tax liabilities, and goodwill also 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		$	5,118
Equipment and other long-term assets			2,212
Intangible assets:
Developed technology			180,000
Goodwill			96,592
Total assets acquired			283,922
Liabilities			2,624
Deferred income taxes, net			27,673
Net assets acquired		$	253,625
Cash paid, net of cash acquired		$	251,825
Fair value of contingent consideration			1,800
Net assets acquired		$	253,625

 

Tangible assets and liabilities acquired were recorded at fair value on the date of close based on management's assessment. The purchase price allocated to developed technology was estimated based on management's forecasted cash inflows and outflows and using a multi-period excess earnings method to calculate the fair value of assets purchased. The preliminary amount recorded for developed technology is being amortized with the expense reflected in cost of goods sold in the Condensed 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. The net deferred income tax liability represents the net amount of the estimated future impact of adjustments for costs to be recognized as intangible asset amortization, which is deductible for income tax purposes offset by the deferred tax asset for the preliminary calculation of acquired NOLs.