Summary of Pro Forma Financial Information

The pro forma information includes adjustments to record the assets and liabilities associated with the Redflex and T2 Systems acquisitions at their respective preliminary fair values and to give effect to the financing of the acquisitions.


	For the Year Ended December 31,
($ in thousands)	2021		2020
Revenue	$	650,567	$	530,807
Net income (loss)		30,099		(58,695	)

Summary of Allocation of Preliminary Purchase Consideration

The allocation of the preliminary purchase consideration is summarized as follows:


($ in thousands)	Reported At June 30, 2021		Measurement Period Adjustments			At December 31, 2021
Assets acquired
Cash and cash equivalents	$	8,760	$	—		$	8,760
Restricted cash		2,163		—			2,163
Accounts receivable		6,870		—			6,870
Unbilled receivables		7,744		(2,461	)		5,283
Property and equipment		27,541		2,268			29,809
Deferred tax assets		9,192		1,123			10,315
Other assets		13,729		5,518			19,247
Trademark		900		—			900
Customer relationships		23,500		2,400			25,900
Developed technology		18,200		—			18,200
Total assets acquired		118,599		8,848			127,447

Liabilities assumed
Accounts payable and accrued liabilities		30,137		1,799			31,936
Deferred revenue		1,772		6,276			8,048
Long-term debt		14,014		—			14,014
Other long-term liabilities		9,948		1,788			11,736
Total liabilities assumed		55,871		9,863			65,734
Goodwill		55,199		1,015			56,214
Total purchase consideration	$	117,927	$	—		$	117,927

The Company recorded measurement period adjustments from the initial purchase price allocation presented as of June 30, 2021, to reflect new information obtained about facts and circumstances that existed as of the Redflex acquisition date. There was no material impact to the statement of operations as a result of these adjustments.

As of December 31, 2021, the evaluation of historical Redflex tax positions and the impact on assumed uncertain tax positions and other tax attributes is preliminary and the Company expects to finalize it as soon as practicable, but not later than one year from the acquisition date.

Summary of Allocation of Preliminary Purchase Consideration

The allocation of the preliminary purchase consideration is summarized as follows:


($ in thousands)
Assets acquired
Cash and cash equivalents	$	13,866
Restricted cash		228
Accounts receivable		9,673
Unbilled receivables		2,153
Inventory		7,467
Property and equipment		3,336
Prepaid and other assets		7,477
Trademark		3,200
Customer relationships		164,300
Developed technology		19,300
Total assets acquired		231,000

Liabilities assumed
Accounts payable and accrued liabilities		10,379
Deferred revenue		21,253
Deferred tax liability		37,129
Other liabilities		4,228
Total liabilities assumed		72,989
Goodwill		195,226
Total assets acquired and liabilities assumed	$	353,237