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Acquisitions and Divestitures | 12 Months Ended
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Aug. 31, 2023
Business Combinations [Abstract] |
Acquisitions and Divestitures | Note 4 – Acquisitions and Divestitures FieldWise, LLC On July 28, 2023 ("the acquisition date"), the Company completed the acquisition of the membership interests of FieldWise, LLC ("FieldWise"). FieldWise is a market leader in agricultural technology products with a focus on subscription-based, precision irrigation solutions. The purchase price of $32.6 million was financed through an all cash transaction from the Company's cash on hand. The following table summarizes the preliminary purchase price allocation for FieldWise at the acquisition date. The Company expects the purchase price allocation to be finalized by the end of fiscal 2024.
($ in thousands) |  | Total |
Cash and cash equivalents |  | $ | 1,779 |
Accounts receivable |  |  | 376 |
Inventories |  |  | 2,651 |
Property and equipment |  |  | 2,443 |
Deferred tax asset |  |  | 94 |
Intangible assets |  |  | 11,400 |
Goodwill |  |  | 15,589 |
Accounts payable and accrued liabilities |  |  | (252 | )
Deferred revenues |  |  | (1,229 | )
Non-current deferred revenues |  |  | (230 | )
Total purchase price |  |  | 32,621 |
The acquired intangible assets include amortizable intangible assets of $10.7 million and indefinite-lived intangible assets of $0.7 million related to tradenames. The amortizable intangible assets have a weighted average useful life of approximately 13.1 years. The following table summarizes the identifiable intangible assets at fair value.
($ in thousands) |  | Weighted average useful life in years |  |  | Fair value of identifiable asset |
Intangible assets: |  |  |  |  |  |
Customer relationships |  |  | 15.0 |  |  | $ | 8,700 |
Developed technology |  |  | 5.0 |  |  |  | 2,000 |
Tradenames |  | N/A |  |  |  | 700 |
Total intangible assets |  |  | 13.1 |  |  | $ | 11,400 |
Goodwill related to the acquisition of FieldWise primarily relates to intangible assets that do not qualify for separate recognition, including the experience and knowledge of FieldWise management, its assembled workforce, and its intellectual capital and specialization with monitoring technology solutions, data acquisition and management systems. This goodwill is included in the irrigation reporting segment and is deductible for income tax purposes. Pro forma information related to this acquisition was not included because the impact on the Company’s consolidated financial statements was not considered to be material. IRZ Consulting, LLC On August 27, 2021, the Company completed the divestiture of ownership interests in IRZ Consulting, LLC (“IRZ”). Proceeds from the sale totaled $3.4 million, which consisted of (i) $1.3 million in cash and (ii) $2.1 million in short-term notes. A gain of $1.1 million was recorded in general and administrative expense on the consolidated statement of earnings in the year ended August 31, 2021.

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