Acquisitions

12 Months Ended

Dec. 31, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

The Company spent $117.5 million in cash, net of cash acquired to acquire Virtek Vision International ("Virtek") in October 2024. Virtek is a leading provider of advanced laser-based projection and inspection systems. Virtek is part of EIG.

The following table represents the allocation of the purchase price for the net assets of Virtek based on the estimated fair values at acquisition (in millions):





Goodwill	$	70.7
Other intangible assets	60.0
Deferred income taxes	(15.9)



Net working capital and other(1)	2.7
Total cash paid	$	117.5

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(1)Includes $6.6 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal.

The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the acquisitions. Virtek's advanced 3D laser projectors, smart cameras, and quality control inspection systems complement the Company's existing Creaform business capabilities.

At December 31, 2024, the purchase price allocated to other intangible assets of $60.0 million consists of $9.6 million of indefinite-lived intangible trade names, which are not subject to amortization. The remaining $50.4 million of other intangible assets consists of $40.8 million of customer relationships, which are being amortized over a period of 17 years and $9.6 million of purchased technology, which is being amortized over a period of 17 years. Amortization expense for each of the next five years for the acquisitions is expected to be $3.0 million per year.

The Virtek acquisition had an immaterial impact on reported net sales, net income, and diluted earnings per share for the year ended December 31, 2024. Had the acquisition been made at the beginning of 2024 or 2023, unaudited pro forma net sales, net income and diluted earnings per share for the year ended December 31, 2024 and 2023, would not have been materially different than the amounts reported. The Company has not finalized its measurements of certain tangible, intangible assets and liabilities and income taxes for the Virtek acquisition.

The Company finalized its measurements of certain tangible and intangible assets and liabilities for its August 2023 acquisition of United Electronic Industries and its October 2023 acquisition of Amplifier Research Corp, which had no material impact to the consolidated statement of income and balance sheet.

The Company finalized its measurements of certain tangible and intangible assets and liabilities, as well as income tax considerations, for the December 2023 Paragon Medical acquisition. The adjustments include an increase to goodwill of $62.2 million, a decrease to fixed assets of $42.4 million, and a decrease to intangibles of $21.7 million. The final balances for Paragon Medical at December 31, 2024 were $969.2 million of goodwill, $169.0 million of fixed assets, and $852.3 million of intangibles. There was no material impact to the consolidated statement of income.

In 2023, the Company spent $2,237.9 million in cash, net of cash acquired, to acquire Paragon Medical ("Paragon") in December 2023, Amplifier Research Corp. ("Amplifier Research") in October 2023, United Electronic Industries ("UEI") in August 2023, and Bison Gear & Engineering Corp. ("Bison") in March 2023. Paragon is a leading provider of highly engineered medical components and instruments. Amplifier Research is a leading manufacturer of radio frequency and microwave amplifiers and electromagnetic compatibility testing equipment. Bison is a leading manufacturer of highly engineered motion control solutions serving diverse markets and applications. UEI is a leading provider of data acquisition and control solutions for the aerospace, defense,

energy and semiconductor industries. UEI and Amplifier Research are part of EIG. Paragon and Bison are part of EMG.

In 2022, the Company spent $429.7 million in cash, net of cash acquired, to acquire Navitar, Inc.("Navitar") in September 2022 and RTDS Technologies Inc. ("RTDS") in October 2022. Navitar is a market leader in the design, development and manufacturing of customized, fully integrated optical imaging systems, cameras, components and software. RTDS is a leading provider of real-time power simulation systems used by utilities, and research and education institutions in the development and testing of the electric power grid and renewable energy applications. Navitar and RTDS are part of EIG.

Acquisition subsequent to December 31, 2024

In January 2025, the Company acquired Kern Microtechnik ("Kern"), a leading manufacturer of high-precision machining and optical inspection solutions supporting a wide range of applications within the medical, semiconductor, research, and space markets. Kern has annual sales of approximately 50 million Euros. Kern will join EIG.