Contingent Consideration Payment On 2014 Acquisition

6 Months Ended

Jun. 30, 2015

Contingent Consideration Payment On 2014 Acquisition [Abstract]

Contingent Consideration Payment On 2014 Acquisition

4.Contingent Consideration Payment on 2014 Acquisition

On October 14, 2014, we acquired the mission critical data center energy services business and certain related assets of Power Design, Inc., a Florida corporation (“PDI”), pursuant to an Asset Purchase and Sale Agreement (the “Purchase Agreement”), between PDI, as seller, and PowerSecure, Inc., as purchaser. We refer to the acquired operations as our Mission Critical Data Center Energy Services operations and have integrated these operations within our Distributed Generation segment. 

The purchase price paid for the Mission Critical Data Center Energy Services operations was $13.0 million in cash and $0.1 million cash for a working capital adjustment plus a potential additional contingent cash payment in the amount of $1.0 million if PowerSecure, Inc. obtains firm backlog after the closing in the amount of at least $5.0 million from the acquired business, or in the amount of $2.0 million if the firm backlog amount obtained after closing is at least $15.0 million. We paid $1.0 million of contingent cash consideration to PDI on April 3, 2015.  We expect to pay an additional $1.0 million in full settlement of the contingent consideration during the remainder of 2015 as the result of additional backlog that the acquired business is expected to generate.  The balance of our contingent consideration liability at June 30, 2015 and December 31, 2014 was $1.0 million and $1.9 million, respectively.