Business Combinations (Tables)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Allocation of Total Purchase Price Consideration

The Company has estimated the allocation of the total purchase price consideration between tangible assets, identified intangible assets, liabilities, and goodwill as follows (in millions):

Acquired tangible assets	$	4.6
Identified intangible assets	6.7
Liabilities assumed	(6.0)
Goodwill	16.0
Total purchase price	$	21.3

The Company has estimated the allocation of the total purchase price consideration between tangible assets, identified intangible assets, liabilities, and goodwill as follows (in millions):

Acquired tangible assets	$	6.8
Identified intangible assets	8.5
Liabilities assumed	(4.8)
Goodwill	10.2
Total purchase price	$	20.7

Schedule of Finite-Lived Intangible Assets Acquired

The following table presents details of the intangible assets acquired during the three months ended March 31, 2020 (dollars in millions).

	Weighted Average Useful Life	Estimated Useful Life	Aggregate Acquisitions
Customer relationships	7 years	7 years	$	13.2
Customer backlog	1 year	1 year	1.1
Non-compete agreements	5 years	5 years	0.1
Trade name	1 year	1 year	0.1
Developed software	3 years	3 years	0.7
Total acquired intangible assets			$	15.2

Pro-Forma Results of Operations

The aggregate amounts of revenue and net income of the MedTouch and Brainjocks acquisitions in the Unaudited Condensed Consolidated Statements of Operations from the respective acquisition dates to March 31, 2020 are as follows (in thousands):

	Acquisition Date to March 31, 2020
Revenues	$	4,380
Net income	$	42

Pro-forma Results of Operations

The following presents the unaudited pro-forma combined results of operations of the Company with the 2019 and 2020 acquisitions for the three months ended March 31, 2020 and 2019, after giving effect to certain pro-forma adjustments and assuming the 2020 acquisitions were acquired as of the beginning of 2019 and the 2019 acquisitions were acquired as of the beginning of 2018.

These unaudited pro-forma results are presented in compliance with the adoption of ASU No. 2010-29, Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations, and are not necessarily indicative of the actual consolidated results of operations had the acquisitions actually occurred on January 1, 2019 or January 1, 2018 or of future results of operations of the consolidated entities (in thousands except per share data):

	Three Months Ended March 31,
	2020		2019
Revenues	$	148,172	$	143,388
Net income	$	9,605	$	5,478
Basic net income per share	$	0.30	$	0.17
Diluted net income per share	$	0.29	$	0.17
Shares used in computing basic net income per share	31,800		31,468
Shares used in computing diluted net income per share	32,981		32,434