Acquisitions (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The components and allocation of the purchase price consists of the following amounts (amounts in thousands):

Cash and cash equivalents	$	3,795
Restricted cash		26,933
Accounts receivable		3,044
Inventory		3,783
Prepaid expenses and other current assets		93
Fixed assets		40
Operating lease right of use asset		3,836
Customer relationships		59,680
Developed technology		28,920
Trademark and tradename		1,570
Non-competition agreements		660
Goodwill		142,021
Deferred taxes		895
Accounts payable		(436	)
Accrued liabilities		(2,474	)
Accrued bonus		(26,928	)
Deferred revenue		(1,709	)
Operating lease liability		(51	)
Operating lease liability, long-term		(3,785	)
Fair value of net assets acquired	$	239,887

Unaudited Supplemental Pro Forma Information

The following table presents unaudited

supplemental pro forma information as if the Spectrum Acquisition had occurred as of January 1, 2017 (amounts in thousands, except per share data):

	December 31, 2017
Total revenue	$	162,913
Net income (loss)	$	17,220
Earnings (loss) per share:
Basic	$	0.41
Diluted	$	0.40

C Technologies, Inc.

Schedule of Business Combination Consideration Transferred

Total consideration transferred is as follows (amounts in thousands):

Cash consideration	$	185,949
Equity consideration		53,938
Fair value of net assets acquired	$	239,887

Schedule of Identified Intangible Assets and Estimated Useful Lives

The following table sets forth the components of the identified intangible assets associated with the C Technologies Acquisition and their estimated useful lives:

	Useful life		Fair Value
			(Amounts in thousands)
Customer relationships		17 years	$	59,680
Developed technology		18 years		28,920
Trademark and tradename		20 years		1,570
Non-competition agreements		4 years		660
Total			$	90,830

Unaudited Supplemental Pro Forma Information

The following pro forma financial information does not reflect any adjustments for anticipated expense savings resulting from the acquisition and is not necessarily indicative of the operating results that would have actually occurred had the transaction been consummated on January 1, 2018 or of future results:

	December 31,
	2019		2018
	(Amounts in thousands, except per share data)
Total revenue	$	279,434	$	217,739
Net income	$	23,394	$	21,195
Earnings per share:
Basic	$	0.48	$	0.44
Diluted	$	0.48	$	0.43

Spectrum Inc.

Schedule of Business Combination Consideration Transferred

The total consideration transferred follows (amounts in thousands):

Cash consideration	$	122,932
Equity consideration		247,575
Working capital adjustment		425
Net assets acquired	$	370,932