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ACQUISITIONS | 9 Months Ended
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Sep. 30, 2023
ACQUISITIONS |
ACQUISITIONS | NOTE 2. ACQUISITIONS On April 25, 2022, we acquired 100% of the issued and outstanding shares of capital stock of SL Power Electronics Corporation (“SL Power”), which is based in Calabasas, California. We accounted for this transaction as a business combination. This acquisition added complementary products to Advanced Energy’s medical power offerings and extended our presence in several advanced industrial markets. The components of the fair value of the total consideration transferred were as follows: ​
​ | ​ | ​ | ​
Cash paid for acquisition | ​ | $ | 145,693
Less cash acquired | ​ | ​ | (3,484)
Total fair value of purchase consideration | ​ | $ | 142,209
​ We allocated the purchase price consideration to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess allocated to goodwill. ​
​ | ​ | ​ | ​
​ | ​ | Fair Value
Current assets and liabilities, net | ​ | $ | 12,329
Property and equipment | ​ | ​ | 3,567
Operating lease right-of-use assets | ​ | ​ | 4,640
Deferred tax and other liabilities | ​ | ​ | (2,326)
Intangible assets | ​ | ​ | 57,600
Goodwill | ​ | ​ | 71,039
Operating lease liability | ​ | ​ | (4,640)
Total fair value of net assets acquired | ​ | $ | 142,209
​ The following table summarizes the intangible assets acquired: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Amortization |  | Useful Life
​ | ​ | Fair Value | ​ | Method | ​ | (in years)
Customer relationships | ​ | $ | 50,500 |  | Straight-line |  | 10
Technology | ​ |  | 7,100 |  | Straight-line |  | 5
Total | ​ | $ | 57,600 |  |  |  |
​ To estimate the fair value of intangible assets, we used a multi-period excess earnings approach for the customer relationships and a relief from royalty approach for developed technology. Goodwill represents SL Power’s assembled workforce and the expected operating synergies from combining operations. We expect virtually all of the goodwill to be deductible for tax purposes.

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