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ACQUISITION ACTIVITY | 12 Months Ended
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Jun. 30, 2020
ACQUISITION ACTIVITY |
ACQUISITION ACTIVITY | 2. ACQUISITION ACTIVITY Acquisition of Explosive Trace Detection Business On July 7, 2017, we acquired the global explosive trace detection business ("ETD") from Smiths Group plc. This acquisition was a carve out from a larger entity. We financed the total purchase price of $80.5 million with a combination of cash on hand and borrowings under our existing revolving bank line of credit. The value attributed to goodwill and intangible assets is partially non-deductible for income tax purposes. Our consolidated statement of operations for fiscal year 2018 includes $76.5 million of revenue and $10.7 million of income from operations from ETD for the period from July 7, 2017 to June 30, 2018. Pro forma adjustments assuming the ETD acquisition had occurred on July 1, 2017 would not be material to revenues and income from operations for fiscal year 2018. Other Business Acquisitions In fiscal 2020 we paid $8.9 million for four business acquisitions, plus an insignificant amount of future contingent consideration. The goodwill recognized for these businesses are deductible for income tax purposes. These acquisitions were financed with available cash on hand. In fiscal 2019 we paid $18.3 million for three business acquisitions, plus up to $6 million in future contingent consideration, which may be earned over a five-year period. The majority of the goodwill recognized for these businesses are deductible for income tax purposes. These acquisitions were financed with cash on hand and borrowings under our credit facility. In January 2018, we (through our Optoelectronics and Manufacturing division) acquired an electronics component designer and manufacturer for approximately $22 million, plus up to $6 million in potential earnout consideration. In aggregate, $12.6 million was attributed to intangible assets, $14.0 million was attributed to goodwill, and $3.3 million was attributed to net assets acquired. The acquisition was financed with cash on hand and borrowings under our existing revolving bank line of credit. In July 2017, we (through our Security division) completed an acquisition of a privately held technology company. The acquisition purchase price was financed with cash on hand and was in an amount (including potential earnout consideration) determined to be insignificant by management. These business acquisitions, individually and in the aggregate, were not material to our consolidated financial statements. Accordingly, pro-forma historical results of operations related to these businesses have not been presented.

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