ACQUISITIONS

The Company’s acquisitions allow it to expand into desirable geographic locations, complement its existing vertical markets, increase revenue and create new service offerings. Acquisitions were settled in cash and/or stock where a portion of the settlement price may have been deferred. For some transactions, purchase agreements contain contingent consideration in the form of an earnout obligation. During the years ended December 31, 2017 and 2016, the Company completed acquisitions with aggregated purchase prices of $6,980 and $5,580, respectively. These acquisitions individually and in the aggregate are not material to the Company’s consolidated financial statements.

NavigationArts — On July 10, 2015, the Company acquired all of the outstanding equity of NavigationArts, Inc. and its subsidiary, NavigationArts, LLC (collectively “NavigationArts”). The U.S.-based NavigationArts provided digital consulting, architecture and content solutions and was regarded as a leading user-experience agency. The acquisition of NavigationArts added approximately 90 design consultants to the Company’s headcount. In connection with the NavigationArts acquisition the Company paid $28,747 as cash consideration. In the first quarter of 2016, the Company made a 338(h)(10) election to treat the NavigationArts acquisition as an asset purchase for tax purposes. As a result, during the second quarter of 2016 the Company paid an additional $1,797 to the sellers of NavigationArts, as provided for in the stock purchase agreement. The acquired goodwill that is deductible for tax purposes was $23,794 as of the date of the acquisition.

AGS — On November 16, 2015, the Company acquired all of the outstanding equity of Alliance Consulting Global Holdings, Inc including its wholly-owned direct and indirect subsidiaries Alliance Global Services, Inc., Alliance Global Services, LLC, companies organized under the laws of the U.S., and Alliance Global Services IT India, a company organized under the laws of India (collectively “AGS”). AGS provided software product development services and test automation solutions and had multiple locations in the United States and India. The acquisition of AGS added 1,151 IT professionals to the Company’s headcount in the United States and India. In connection with the AGS acquisition the Company paid $51,717 as cash consideration.

The following is a summary of the fair values of the net assets acquired through each respective acquisition during the year ended December 31, 2015:



	NavigationArts		AGS		Total
Cash and cash equivalents	$	1,317	$	1,727	$	3,044
Accounts receivable and other current assets	3,920		9,934		13,854
Property and equipment and other long-term assets	230		1,600		1,830
Deferred tax assets	—		5,722		5,722
Acquired intangible assets	2,800		22,700		25,500
Goodwill	23,794		24,454		48,248
Total assets acquired	32,061		66,137		98,198
Accounts payable and accrued expenses	871		2,760		3,631
Bank loans and other long-term liabilities	—		295		295
Deferred revenue	50		1,049		1,099
Due to employees	596		2,342		2,938
Deferred tax liabilities	—		7,974		7,974
Total liabilities assumed	1,517		14,420		15,937
Net assets acquired	$	30,544	$	51,717	$	82,261

The following table presents the fair values and useful lives of intangible assets acquired through each respective acquisition during the year ended December 31, 2015:



	NavigationArts			AGS
	Weighted Average Useful Life (in years)	Amount		Weighted Average Useful Life (in years)	Amount
Customer relationships	10	$	2,800	10	$	22,700
Total		$	2,800		$	22,700