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ACQUISITIONS

12 Months Ended

Dec. 31, 2021

NOTE 2. ACQUISITIONS

Intangible Assets Acquired

In January 2021, we acquired certain intangible assets related to the manufacturing of fiber optic sensing equipment. As of December 31, 2021, we paid $6.1 million in cash and expect to pay an additional $0.4 million within one year of the closing. These intangible assets have an estimated useful life of five years. See Note 13. Intangible Assets for additional details.

TEGAM, Inc.

On June 1, 2021, we acquired 100% of the issued and outstanding shares of capital stock of TEGAM, Inc., which is based in Geneva, Ohio. This acquisition added metrology and calibration instrumentation to Advanced Energy’s RF process power solutions in our Semiconductor and Industrial and Medical markets.

The components of the fair value of the total consideration transferred were as follows:


Cash paid for acquisition	$	15,430
Holdback		1,800
Total fair value of consideration transferred		17,230
Less cash acquired		(177)
Total purchase price	$	17,053

The following table summarizes the preliminary values of the assets acquired and liabilities assumed:


	Preliminary Fair Value
Current assets and liabilities, net	$	3,536
Property and equipment		734
Operating lease right-of-use assets		425
Intangible assets		6,900
Goodwill (deductible for tax purposes)		5,877
Other non-current assets		31
Total assets acquired		17,503
Other non-current liabilities		25
Operating lease liability		425
Total liabilities assumed		450
Total fair value of net assets acquired	$	17,053

A summary of the intangible assets acquired, amortization method, and estimated useful lives follows:


			Amortization
			Method	Useful Life
Technology	$	1,100	Straight-line	5
Customer relationships		5,500	Straight-line	15
Tradename		300	Straight-line	5
Total	$	6,900

Versatile Power, Inc

On December 31, 2020, we acquired 100% of the issued and outstanding shares of Versatile Power, Inc., which is based in Campbell, California. This acquisition added radio frequency ("RF") and programmable power supplies for medical and industrial applications to our product portfolio and further expands our presence in the medical market by adding proven technologies, deep customer relationships, expertise in medical design, and a medical-certified manufacturing center.

The components of the fair value of the total consideration transferred were as follows:


Cash paid for acquisition	$	4,654
Holdback		950
Total fair value of consideration transferred		5,604
Less cash acquired		(245)
Total purchase price	$	5,359

The following table summarizes the final values of the assets acquired and liabilities assumed:


	Fair Value
Current assets and liabilities, net	$	1,021
Property and equipment		35
Operating lease right-of-use assets		463
Intangible assets		4,000
Goodwill (deductible for tax purposes)		323
Total assets acquired		5,842
Other non-current liabilities		20
Operating lease liability		463
Total liabilities assumed		483
Total fair value of net assets acquired	$	5,359

A summary of the intangible assets acquired, amortization method, and estimated useful lives follows:


			Amortization
			Method	Useful Life
Technology	$	400	Straight-line	5
Customer relationships		3,600	Straight-line	15
Total	$	4,000