Acquisitions and Divestitures

Acquisitions support the Company's strategy of delivering a broad solutions portfolio with robust technology across multiple geographies and end markets. The following acquisitions were made during the nine months ended June 30, 2018.

The Company acquired Pure Water Solutions on January 31, 2018, a provider of high-purity water equipment and systems, service deionization and resin regeneration, with service operations in suburban Denver, CO and Santa Fe, NM for $4,699; $3,706 cash at closing with a maximum earn-out payment of $993 to be paid out twelve months after the closing. The fair value of earn-out payments at the date of acquisition was $461. Pure Water Solutions is part of the Industrial Segment, and extends the Company’s service network.

On March 9, 2018, the Company acquired Pacific Ozone Technology, Inc, a provider of advanced ozone disinfection systems, testing products and support services for $8,557; $6,557 cash at closing; with up to another $2,000 of earn-out payments to be paid out over three years after the closing. The fair value of earn-out payments at the date of acquisition was $934. Pacific Ozone, based in Benecia, CA, is part of the Products Segment and adds a new technology, ozone disinfection, to the portfolio and further enhances the Company's ability in the industrial water treatment and aquatics market.

Pro forma results for acquisitions completed during the nine months ended June 30, 2018 were determined to not be material.

The preliminary opening balance sheet for the acquisitions is summarized as follows.



	Pure Water			Pacific Ozone			Total
Current assets	$	277		$	1,953		$	2,230
Property, plant and equipment	175			151			326
Goodwill	2,462			3,757			6,219
Intangible assets	1,488			2,678			4,166
Total assets acquired	4,402			8,539			12,941
Total liabilities assumed	(164		)	(916		)	(1,080		)
Net assets acquired	$	4,238		$	7,623		$	11,861

On April 9, 2018, the Company completed the sale of 100% of the corporate capital of Evoqua Water Technologies S.r.l., which includes the Company’s former operations in Italy, to Giotto Water S.r.l. (Giotto). The aggregate purchase price paid in cash by Giotto in the transaction was €350 ($430), subject to certain earn-out adjustments to be paid by Giotto in connection with the realization of specified tax benefits relating to previous years, and resulted in a nominal gain which is included in Other operating (expense) income of the Unaudited Condensed Consolidated Statements of Operations. The major classes of assets and liabilities included in this transaction were Accounts receivable of 344 euro, ($484), Cost and earnings in excess of billings on uncompleted contracts 225 euro, ($277), Prepaid and other current asset 283 euro, ($348), Goodwill 118 euro, ($145), Other non-current assets 180 euro, ($222), Accounts payable 33 euro, ($40), current Product warranty 516, ($625) and Accrued expenses and other liabilities 147 euro, ($181).