Business Combinations

9 Months Ended

Jun. 27, 2014

Business Combinations

15. BUSINESS COMBINATIONS

In April 2014, the Company closed the acquisition of certain assets of Velocity Medical Solutions LLC (“Velocity”), a privately-held Atlanta-based developer of specialized software for cancer clinics. The Velocity software aggregates unstructured treatment and imaging data from diverse systems to give a more comprehensive view of a patient's diagnostic imaging and treatment history and help clinicians make more informed treatment decisions. The acquired assets of Velocity were integrated into the Company’s Oncology Systems business and will increase the Company’s current product offerings. The acquisition was accounted for as a business combination. The total purchase price of the acquisition of $19.9 million consisted of $17.0 million in cash (of which $2.6 million was held back) and $2.9 million of earn-out consideration at fair value.  Of the purchase price, $10.6 million was preliminarily allocated to amortizable intangible assets, $9.8 million goodwill, and $(0.5) million to net assumed liabilities. If any additional information becomes available, we may revise our preliminary purchase price allocation. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and in this case is deductible for income tax purposes. The amortization period for the intangible assets acquired through the acquisition was as follows: 6 years for Developed Technology, 7 years for Customer Relationships and 6 years for Trade Name. The goodwill recognized, which was assigned to the Company’s Oncology Systems reporting unit, is primarily attributable to expected synergies resulting from the acquisition. The Company also completed an insignificant acquisition during the first quarter of fiscal year 2014.

The business combination transactions during the first nine months of fiscal year 2014 were not significant, and therefore pro forma disclosures have not been presented.