BUSINESS COMBINATIONS

3 Months Ended

Jan. 01, 2021

Business Combinations [Abstract]

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS

Business Combinations in Fiscal Year 2021

The Company completed an acquisition related to its Oncology Systems business that was not material in the first quarter of fiscal year 2021, which was comprised of intangible assets acquired and contingent consideration. The Company has included this acquisition in its Oncology Systems business. The purchase accounting for this transaction is not yet finalized.

Measurement Period Adjustments

In the first quarter of fiscal year 2021, the Company recorded a measurement period adjustment of $0.5 million to the fair value of the purchase consideration of a business combination that occurred in the fourth quarter of fiscal year 2020. The adjustment consisted of an increase to goodwill and a corresponding increase to the fair value of the contingent consideration liability.

Business Combinations in Fiscal Year 2020

During fiscal year 2020, the Company acquired a distributor of radiotherapy equipment, for a purchase price of $32.7 million, which consisted of $25.5 million in cash consideration, $5.8 million of contingent consideration and $1.4 million in other consideration. The purchase price primarily consisted of $13.1 million in goodwill and $12.1 million in finite-lived intangible assets. The Company has included this acquisition in its Oncology Systems business. The goodwill for this acquisition is not deductible for income tax. The purchase accounting for this transaction is not yet finalized.

The Company also completed five other acquisitions which had an aggregate purchase price of $11.5 million. The Company has included these acquisitions in its Oncology Systems business. The purchase accounting for some of these transactions is not yet finalized.

Other Information

The excess of purchase price over the fair value amounts assigned to the assets acquired and liabilities assumed represents the goodwill amount. The Company believes the factors that contributed to goodwill in its completed acquisitions include synergies not available to market participants, as well as the acquisition of a talented workforce.

The fair value of assets acquired and liabilities assumed, has been determined on a preliminary basis for acquisitions completed in the current year and certain acquisitions in the previous fiscal year. The Company will finalize these amounts as it obtains the information necessary to complete the measurement process. Any changes resulting from facts and circumstances that existed as of the date of a business combination may result in certain adjustments. The Company expects to finalize these amounts no later than one year from the date of each business combination.

The condensed consolidated financial statements include the operating results from the date the above businesses were acquired. Pro forma results of operations for the completed acquisitions have not been presented because the effects were not material to the Company's condensed consolidated financial statements.

The Company incurred transaction costs of $7.5 million and $3.9 million during the three months ended January 1, 2021 and January 3, 2020, respectively.