XML 38 R24.htm IDEA: XBRL DOCUMENT v3.3.1.900
SUBSEQUENT EVENTS
12 Months Ended
Feb. 29, 2016
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS

NOTE 18 – SUBSEQUENT EVENTS

LoJack Acquisition

As of March 15, 2016, the Company acquired effective control of LoJack through a tender offer process that resulted in CalAmp owning 80.2% of LoJack's outstanding shares of common stock, for which it paid a purchase price per share of $6.45. Three days later on March 18, 2016, CalAmp completed the acquisition of LoJack by effecting a merger in which the LoJack shares not validly tendered were canceled and converted into the right to receive the merger consideration of $6.45 per share. As a result, LoJack became a wholly-owned subsidiary of the Company. The Company funded the acquisition from on-hand cash, cash equivalents and marketable securities. The total purchase price was $130.7 million, which included the $5.5 million fair value of the 850,100 shares of LoJack common stock that CalAmp purchased in the open market in November and December 2015, prior to entering into a definitive acquisition agreement with LoJack.

The acquisition will be accounted for as business combination. Since the closing of this acquisition occurred subsequent to the Company's fiscal year-end, the allocation of the purchase price to the underlying assets acquired and liabilities assumed is subject to a formal valuation process, which has not yet been completed. The Company will include the preliminary purchase price allocation in the first quarter of fiscal 2017. The purchase price allocation will be finalized as soon as practicable within the measurement period, but not later than one year following the acquisition date.

Cessation of Key Customer Relationship

Subsequent to the end of fiscal 2016, EchoStar notified CalAmp that, as a result of a consolidation of its supplier base in specific areas of its business to better align with its future requirements and its reduced demand for the products that we currently supply, it has determined that it will discontinue purchasing products from CalAmp at the end of the current product demand forecast. EchoStar's current product demand forecast extends through August 2016. As a result of EchoStar's decision, CalAmp expects sales to this customer will cease after the second quarter of fiscal 2017. CalAmp is currently evaluating its Satellite business, but in light of the fact that EchoStar accounts for essentially all of the revenue of the Satellite segment, CalAmp expects that this portion of its operations will be discontinued during fiscal 2017.