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Business Acquisitions | 3 Months Ended
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Jul. 27, 2024
Business Acquisitions |
Business Acquisitions | 16. Business Acquisitions ​ Tomahawk Acquisition ​ On September 15, 2023, the Company closed its acquisition of Tomahawk Robotics, Inc., a leader in AI-enabled robotic control systems. Pursuant to the merger agreement, the Company acquired 100% of Tomahawk equity for an aggregate purchase price of $134,467,000 consisting of 985,999 shares of restricted common stock of the Company valued at $109,820,000 and $27,205,000 cash-on-hand, net of $3,048,000 cash acquired, plus a $490,000 holdback. During the fiscal year ended April 30, 2024, the holdback was decreased $100,000 as part of the working capital adjustment, and the total purchase price and goodwill, therefore, decreased by $100,000 as well. The fair value of the shares issued was the closing price on September 15, 2023, the close of the Tomahawk purchase agreement. Tomahawk is incorporated into AeroVironment’s UxS segment. The acquisition will enable deeper integration of both companies’ technology, leading to enhanced interoperability and interconnectivity of uncrewed systems through a singular platform with similar control features. The Company accounted for the acquisition under the acquisition method of accounting for business combinations. ​ The following table summarizes the provisional allocation of the purchase price over the estimated fair value of the assets and liabilities assumed in the acquisition of Tomahawk. The purchase price allocation is expected to be finalized as soon as practicable within the measurement period, but not later than one year following the acquisition date (in thousands):
​ | ​ | ​ | ​
​ | ​ | September 15,
​ | ​ | 2023
Fair value of assets acquired: | ​ | ​ | ​
Accounts receivable |  | $ | 2,314
Unbilled receivable | ​ | ​ | 993
Inventories, net | ​ | ​ | 2,882
Prepaid and other current assets | ​ | ​ | 148
Property and equipment, net | ​ | ​ | 1,789
Operating lease assets | ​ | ​ | 1,337
Other assets | ​ | ​ | 71
Technology | ​ | ​ | 39,000
Customer relationship | ​ | ​ | 4,800
Trademarks | ​ | ​ | 1,600
Deferred tax asset | ​ | ​ | 2,865
Goodwill | ​ | ​ | 95,414
Total identifiable net assets | ​ | $ | 153,213
​ | ​ | ​ | ​
Fair value of liabilities assumed: | ​ | ​ | ​
Accounts payable | ​ | ​ | 3,788
Wages and related accruals | ​ | ​ | 620
Customer advances | ​ | ​ | 1,648
Current operating lease liabilities | ​ | ​ | 482
Other current liabilities | ​ | ​ | 411
Non-current operating lease liabilities | ​ | ​ | 855
Other non-current liabilities | ​ | ​ | 7
Deferred income taxes | ​ | ​ | 11,035
Total liabilities assumed | ​ | ​ | 18,846
Total identifiable net assets | ​ | $ | 134,367
​ | ​ | ​ | ​
Fair value of consideration transferred: | ​ | ​ | ​
Equity consideration | ​ | $ | 109,820
Cash consideration, net of cash acquired | ​ | ​ | 24,157
Holdback | ​ | ​ | 390
Total consideration | ​ | $ | 134,367
​ Determining the fair value of the intangible assets acquired requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. The fair value of the intangible assets was determined using a discounted cash flow analysis, which were based on the Company’s preliminary estimates of future sales, earnings and cash flows after considering such factors as general market conditions, anticipated customer demand, changes in working capital, long term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results. ​ The goodwill is attributable to the synergies the Company expects to achieve through leveraging the acquired technology to its existing customers, the workforce of Tomahawk and expected future customers in the UxS market. For income tax purposes the acquisition is treated as a stock acquisition, and none of the goodwill is expected to be deductible. ​ Tomahawk Supplemental Pro Forma Information (unaudited) ​ The following unaudited pro forma summary presents condensed consolidated information of the Company as if the business acquisition had occurred on May 1, 2022 (in thousands): ​
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | Three Months Ended | ​
​ | ​ | ​ | July 29, | ​
​ | ​ | ​ | 2023 | ​
Revenue | ​ | $ | 155,174 | ​
Net income | ​ | $ | 18,752 | ​
​ The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business acquisition included in the reported pro forma revenue and earnings. ​ These pro forma amounts have been calculated by applying the Company’s accounting policies, assuming transaction costs had been incurred during the three months ended July 30, 2022, reflecting the additional amortization that would have been charged and including the results of Tomahawk prior to acquisition. ​ The unaudited pro forma supplemental information is based on estimates and assumptions, which the Company believes are reasonable and are not necessarily indicative of the results that have been realized had the acquisition been consolidated in the tables above as of May 1, 2022, nor are they indicative of results of operations that may occur in the future.

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