BUSINESS ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2018

BUSINESS ACQUISITIONS

Schedule of unaudited pro forma results of operations

	Year Ended
	December 31,
	2017
Net sales	$	4,954,494
Net income attributable to Diplomat Pharmacy, Inc.	$	6,733
Income per common share — basic and diluted	$	0.09

LDI Holding Company LLC

BUSINESS ACQUISITIONS

Schedule of consideration transferred

Cash	$	520,157
4,113,188 restricted common shares		79,088
	$	599,245

Summary of the fair values of identifiable acquired assets and assumed liabilities

Cash	$	780
Receivables		40,852
Inventories		2,857
Prepaid expenses and other current assets		750
Property and equipment		1,930
Capitalized software for internal use		1,325
Definite-lived intangible assets		201,523
Other noncurrent assets		148
Accounts payable		(16,409)
Rebates payable		(23,121)
Accrued expenses — compensation and benefits		(2,329)
Accrued expenses — other		(1,948)
Deferred income taxes		(31,434)
Total identifiable net assets		174,924
Goodwill		424,321
	$	599,245

Schedule of definite-lived intangible assets that were acquired and their respective useful lives

	Useful
	Life	Amount
Customer relationships	10 years	$	184,973
Trade names and trademarks	4 years		16,550
		$	201,523

Pharmaceutical Technologies, Inc.

BUSINESS ACQUISITIONS

Schedule of consideration transferred

Cash	$	36,534
835,017 restricted common shares		12,753
	$	49,287

Summary of the fair values of identifiable acquired assets and assumed liabilities

Cash	$	9,851
Accounts receivable		20,622
Inventories		200
Prepaid expenses and other current assets		650
Property and equipment		13,544
Capitalized software for internal use		1,800
Definite-lived intangible assets		6,720
Accounts payable		(14,968)
Rebates payable		(7,882)
Accrued expenses — compensation and benefits		(160)
Accrued expenses — other		(4,891)
Total identifiable net assets		25,486
Goodwill		23,801
	$	49,287

Schedule of definite-lived intangible assets that were acquired and their respective useful lives

	Useful
	Life	Amount
Customer relationships	10 years	$	5,900
Trade names and trademarks	2 years		820
		$	6,720

Focus Rx Pharmacy Services Inc. and Focus Rx Inc.

BUSINESS ACQUISITIONS

Schedule of consideration transferred

Cash	$	17,252
374,297 restricted common shares		5,643
Contingent consideration at fair value		2,080
	$	24,975

Summary of the fair values of identifiable acquired assets and assumed liabilities

Cash	$	1,809
Accounts receivable		5,123
Inventories		261
Definite-lived intangible assets		7,100
Other noncurrent assets		22
Accounts payable		(5,122)
Accrued expenses — compensation and benefits		(156)
Total identifiable net assets		9,037
Goodwill		15,938
	$	24,975

Schedule of definite-lived intangible assets that were acquired and their respective useful lives

	Useful
	Life	Amount
Patient relationships	7 years	$	3,700
Non-compete employment agreements	3 years		2,200
Trade names and trademarks	3 years		1,200
		$	7,100

Accurate Rx Pharmacy Consulting, LLC

BUSINESS ACQUISITIONS

Schedule of consideration transferred

Cash	$	9,408
131,108 restricted common shares		1,776
Contingent consideration at fair value		1,980
	$	13,164

Summary of the fair values of identifiable acquired assets and assumed liabilities

Cash	$	1,295
Accounts receivable		2,196
Inventory		936
Prepaid expenses and other current assets		34
Definite-lived intangible assets		3,420
Other noncurrent assets		3
Accounts payable		(3,303)
Accrued expenses — compensation and benefits		(152)
Accrued expenses — other		(6)
Total identifiable net assets		4,423
Goodwill		8,741
	$	13,164

Schedule of definite-lived intangible assets that were acquired and their respective useful lives

	Useful
	Life	Amount
Patient relationships	7 years	$	2,100
Non-compete employment agreements	5 years		670
Trade names and trademarks	4 years		650
		$	3,420

WRB Communications, LLC

BUSINESS ACQUISITIONS

Schedule of consideration transferred

Cash	$	26,804
299,325 restricted common shares		4,291
Contingent consideration at fair value		530
	$	31,625

Summary of the fair values of identifiable acquired assets and assumed liabilities

Cash	$	1,018
Accounts receivable		2,593
Prepaid expenses and other current assets		179
Property and equipment		498
Definite-lived intangible assets		7,730
Other noncurrent assets		24
Accounts payable		(100)
Accrued expenses — other		(498)
Total identifiable net assets		11,444
Goodwill		20,181
	$	31,625

Schedule of definite-lived intangible assets that were acquired and their respective useful lives

	Useful
	Life	Amount
Customer relationships	7 years	$	5,200
Non-compete employment agreements	4 years		1,530
Trade names and trademarks	2 years		1,000
		$	7,730

Comfort Infusion, Inc.

BUSINESS ACQUISITIONS

Schedule of consideration transferred

Cash	$	10,613
Contingent consideration at fair value		3,800
	$	14,413

Summary of the fair values of identifiable acquired assets and assumed liabilities

Cash	$	104
Accounts receivable		575
Inventories		118
Prepaid expenses and other current assets		15
Definite-lived intangible assets		2,400
Other noncurrent assets		5
Accounts payable		(372)
Accrued expenses - other		(101)
Total identifiable net assets		2,744
Goodwill		11,669
	$	14,413

Schedule of definite-lived intangible assets that were acquired and their respective useful lives

	Useful
	Life	Amount
Physician relationships	7 years	$	1,200
Non-compete employment agreements	5 years		1,200
		$	2,400

Affinity Biotech, Inc.

BUSINESS ACQUISITIONS

Schedule of consideration transferred

Cash	$	17,228
Contingent consideration at fair value		35
	$	17,263

Summary of the fair values of identifiable acquired assets and assumed liabilities

Cash	$	1,043
Accounts receivable		3,433
Inventories		79
Prepaid expenses and other current assets		74
Definite-lived intangible assets		5,100
Other noncurrent assets		5
Accounts payable		(1,075)
Accrued expenses - compensation and benefits		(144)
Accrued expenses - other		(25)
Total identifiable net assets		8,490
Goodwill		8,773
	$	17,263

Schedule of definite-lived intangible assets that were acquired and their respective useful lives

	Useful
	Life	Amount
Patient relationships	7 years	$	4,000
Non-compete employment agreements	5 years		1,100
		$	5,100

Valley Campus Pharmacy, Inc

BUSINESS ACQUISITIONS

Schedule of consideration transferred

Cash	$	70,117
324,244 restricted common shares		9,507
	$	79,624

Summary of the fair values of identifiable acquired assets and assumed liabilities

Cash	$	2,114
Accounts receivable		16,271
Inventories		4,740
Prepaid expenses and other current assets		46
Property and equipment		200
Capitalized software for internal use		14,000
Definite-lived intangible assets		13,890
Other noncurrent assets		21
Accounts payable		(29,773)
Accrued expenses - compensation and benefits		(400)
Accrued expenses - other		(1,962)
Total identifiable net assets		19,147
Goodwill		60,477
	$	79,624

Schedule of definite-lived intangible assets that were acquired and their respective useful lives

	Useful
	Life	Amount
Physician relationships	10 years	$	7,700
Non-compete employment agreements	5 years		4,490
Trade names and trademarks	1 year		1,700
		$	13,890