XML 37 R24.htm IDEA: XBRL DOCUMENT v3.22.0.1
Business Acquisitions
12 Months Ended
Dec. 31, 2021
Business Combinations [Abstract]  
Business Acquisitions

Note 18 - Business Acquisitions

Occam Video Solutions, LLC

On December 22, 2021, we acquired all of the outstanding membership interests of Occam Video Solutions LLC, a developer of forensic video solutions software. The primary reason for the acquisition was to acquire technologies and know-how to enable Axon to serve customers more effectively.

The purchase price of $26.0 million consisted of $22.0 million in cash, net of cash acquired of $0.3 million, $1.5 million, or 9,381 shares, of Axon shares which vest ratably over 3 years, and up to $2.5 million, or 15,635 shares, of contingent consideration, which vest in two even tranches if specified financial targets are achieved by March 31, 2025.

The final purchase price and purchase price allocation will be finalized at the end of the measurement period when we have completed the detailed valuations and necessary calculations. Based on the preliminary purchase price allocation, we recorded $18.0 million of goodwill, $8.6 million of identifiable intangible assets, and $0.7 million in net liabilities. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of the business and is deductible for tax purposes. We have assigned the goodwill to the Software and Sensors segment. Identifiable definite-lived intangible assets were assigned a total weighted average amortization period of 3.6 years.