National Electronic Service Association (NESA) Acquisition

12 Months Ended

Sep. 30, 2016

National Electronic Service Association (NESA) Acquisition

National Electronic Service Association (NESA) Acquisition

4. National Electronic Service Association (NESA)Acquisition

         On November 1, 2012, the Company acquired the assets and assumed liabilities of NESA in an all-cash transaction. The acquisition price included an upfront cash payment of approximately $18.3 million and an earn-out payment. The Company's estimate of the fair value of the earn-out as of the date of acquisition was $18.0 million. Based upon revised projections, the Company determined that the fair value of the earn-out as of June 30, 2014 was zero and reversed the liability of $18.6 million with a corresponding reduction (credit) in the acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets line in the Consolidated Statements of Operations for the year ended September 30, 2014.

         NESA ceased operations in fiscal 2015. The Company has no further contractual obligations regarding the earn-out payment.