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BUSINESS ACQUISITIONS
 3 Months Ended
Sep. 30, 2016
Business Combinations [Abstract]  
BUSINESS ACQUISITIONS
(3) BUSINESS ACQUISITIONS
Acquisition of Acro Pharmaceutical Services LLC and Community Pharmacy Services, LLC
On August 23, 2016, the Company, through its consolidated subsidiary, NS3 Health, LLC, acquired 100% of the membership interests of Acro Pharmaceutical Services LLC and Community Pharmacy Services, LLC (collectively, "Acro Pharmaceuticals") for $68.7 million in cash, subject to adjustment based on Acro Pharmaceuticals' (i) cash on hand, (ii) outstanding indebtedness and (iii) net working capital at closing. Acro Pharmaceuticals is a specialty pharmacy business that provides customized healthcare management solutions to clients. The acquisition was funded with available cash on hand.
The Company has accounted for the Acro Pharmaceuticals acquisition as a business combination whereby the purchase price was allocated to tangible and intangible assets (see Note 6 - Intangible Assets, Net) acquired and liabilities assumed based on their preliminary fair values. The Acro Pharmaceuticals acquisition resulted in the recognition of approximately $39.9 million of goodwill (see Note 7 - Goodwill) attributable to the anticipated profitability of Acro Pharmaceuticals. The Acro Pharmaceuticals acquisition is considered an asset acquisition for tax purposes. Accordingly, the Company expects the goodwill to be deductible for tax purposes.
Acro Pharmaceuticals generated $23.4 million of product revenue during the three months ended September 30, 2016. The net income generated by Acro Pharmaceuticals was not material to the accompanying condensed consolidated statements of income for the three months ended September 30, 2016. The Company reports Acro Pharmaceuticals as part of its supply chain services segment.
The purchase price allocation for the Acro Pharmaceuticals acquisition is preliminary and subject to changes in fair value of working capital, valuation of the assets acquired and the liabilities assumed.