Acquisitions

12 Months Ended

Dec. 28, 2019

Acquisitions

Acquisitions

8. Acquisitions

Z-Wave

On April 18, 2018, the Company completed the acquisition of the Z-Wave business from Sigma Designs, Inc. for $243 million in cash. Z-Wave is an Internet of Things (IoT) technology for smart home solutions.

8. Acquisitions (Continued)

This strategic acquisition expanded the Company’s IoT connectivity portfolio in the connected home and security market, while further scaling the Company's engineering team. These factors contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. A portion of the goodwill is deductible for tax purposes. The purchase price was allocated as follows (in thousands):

			Weighted-Average
			Amortization Period
	Amount		(Years)
Intangible assets:
In-process research and development	$	20,900	Not amortized
Developed technology		69,875	7
Customer relationships		25,000	4
Trademarks		9,900	7
		125,675
Cash and cash equivalents		2,841
Accounts receivable		5,311
Inventory		15,581
Other current assets		329
Goodwill		109,117
Other non-current assets		2,587
Accounts payable		(3,306)
Other current liabilities		(8,918)
Other non-current liabilities		(6,648)
Total purchase price	$	242,569

The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, giving effect to the acquisition as if it had been completed on January 1, 2017. The pro forma financial information includes charges for the fair value write-up associated with acquired inventory, adjustments for amortization expense of acquired intangible assets and tax-related expenses. The pro forma results of operations are presented for informational purposes only and are not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2017 or of results that may occur in the future (in thousands, except per share data):

	Year Ended
	December 29,		December 30,
	2018		2017
	(Unaudited)
Revenues	$	882,109	$	824,009
Net income	$	87,874	$	27,958
Earnings per share:
Basic	$	2.04	$	0.66
Diluted	$	2.00	$	0.65

Zentri

On January 20, 2017, the Company acquired Zentri, Inc., a private company. Zentri was an innovator in low-power, cloud-connected Wi-Fi technologies for the IoT. The Company acquired Zentri for approximately $18.1 million, including initial cash consideration of approximately $14.3 million, and potential additional consideration with an estimated fair value of approximately $3.8 million at the date of acquisition.

8. Acquisitions (Continued)

The purchase price was allocated as follows: intangible assets—$6.7 million; goodwill—$12.1 million; and other net liabilities—$0.7 million. The goodwill is not deductible for tax purposes. Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported.

Other

In October 2019, the Company acquired IEEE 1588 precision time protocol (PTP) software and module assets from Qulsar. The transaction was accounted for as a business combination, which was not material to the Company.