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Mergers and Acquisitions | 9 Months Ended
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Sep. 30, 2016
Business Combinations [Abstract] |
Mergers and Acquisitions | Mergers and Acquisitions Oxitec Acquisition In September 2015, pursuant to a Stock Purchase Agreement (the "Oxitec Purchase Agreement"), the Company acquired 100% of the issued outstanding share capital of Oxitec. The aggregated consideration paid consisted of (i) 1,359,343 shares of the Company's common stock (the "Stock Consideration") and (ii) $90,199 in cash (the "Cash Consideration"), inclusive of net cash and working capital adjustments, as defined in the Oxitec Purchase Agreement, totaling $9,449. Stock Consideration totaling 480,422 shares and Cash Consideration totaling $1,991 were withheld as escrow at closing and are issuable and payable, respectively, eighteen months after closing, subject to reduction for satisfaction of any claims for indemnification made by the Company under the Oxitec Purchase Agreement. Cash Consideration withheld is included in deferred consideration as of September 30, 2016. The results of Oxitec's operations subsequent to the acquisition date have been included in the consolidated financial statements. The fair value of the total consideration transferred was $146,394. The acquisition date fair value of the Stock Consideration and Cash Consideration is presented below:
Cash | $ | 90,199 |
Common shares | 56,195 |
| $ | 146,394 |
The fair value of the shares of the Company common stock issued was based on the quoted closing price of the Company's common stock as of the closing date of the acquisition. The estimated fair value of assets acquired and liabilities assumed at the acquisition date is shown below:
Cash | $ | 3,780 |
Trade receivables | 125 |
Other receivables | 7,395 |
Prepaid expenses and other | 121 |
Property, plant, and equipment | 1,198 |
Intangible assets | 96,854 |
Total assets acquired | 109,473 |
Accounts payable | 1,187 |
Accrued compensation and benefits | 246 |
Other accrued liabilities | 210 |
Deferred revenue | 120 |
Deferred tax liabilities | 12,584 |
Total liabilities assumed | 14,347 |
Net assets acquired | 95,126 |
Goodwill | 51,268 |
Total consideration | $ | 146,394 |
The acquired intangible assets primarily include in-process research and development, the fair value of which was determined using the multi-period excess earning method, which is a variation of the income approach that converts future cash flows to single discounted present value amounts. The in-process research and development are currently indefinite-lived intangible assets and, accordingly, are not being amortized. Goodwill, which is not expected to be deductible for tax purposes, represents the assembled workforce and the potential for future Oxitec products and technologies. The Company incurred $1,675 of acquisition-related costs, of which $1,644 are included in selling, general and administrative expenses in the accompanying consolidated statements of operations for three and nine months ended September 30, 2015. Okanagan Acquisition In April 2015, pursuant to a Stock Purchase Agreement (the "Okanagan Purchase Agreement"), the Company acquired 100% of the outstanding shares of Okanagan. Pursuant to the Okanagan Purchase Agreement, the former shareholders of Okanagan received an aggregate of 707,853 shares of the Company's common stock, and $10,000 cash in exchange for all shares in Okanagan. The results of Okanagan's operations subsequent to the acquisition date have been included in the consolidated financial statements. The fair value of the total consideration transferred was $40,933. The acquisition date fair value of each class of consideration transferred is presented below:
Cash | $ | 10,000 |
Common shares | 30,933 |
| $ | 40,933 |
The fair value of the shares of the Company's common stock issued was based on the quoted closing price of the Company's common stock as of the closing date of the acquisition. The estimated fair value of assets acquired and liabilities assumed at the acquisition date is shown below:
Cash | $ | 58 |
Trade receivables | 16 |
Other receivables | 49 |
Property, plant, and equipment | 32 |
Intangible assets | 36,500 |
Total assets acquired | 36,655 |
Accounts payable | 181 |
Deferred revenue | 181 |
Deferred tax liabilities | 8,847 |
Total liabilities assumed | 9,209 |
Net assets acquired | 27,446 |
Goodwill | 13,487 |
Total consideration | $ | 40,933 |
The acquired intangible assets primarily include developed technology, patents and know-how and the fair values of the acquired assets were determined using the with-and-without method, which is a variation of the income approach that utilizes estimated cash flows with all assets in place at the valuation date and estimated cash flows with all assets in place except the intangible assets at the valuation date. The intangible assets are being amortized over a useful life of fourteen years. Goodwill, which is not expected to be deductible for tax purposes, represents potential future applications of Okanagan's technology to other fruits, including additional apple varietals, and anticipated buyer-specific synergies arising from the combination of the Company's and Okanagan's technologies. The Company incurred $341 of acquisition-related costs, of which $267 are included in selling, general and administrative expenses in the accompanying consolidated statement of operations for the nine months ended September 30, 2015. ActoGeniX Acquisition In February 2015, the Company acquired 100% of the membership interests of ActoGeniX NV ("ActoGeniX"), a European biopharmaceutical company, pursuant to a Stock Purchase Agreement (the "ActoGeniX Purchase Agreement"). ActoGeniX's platform technology complements the Company's suite of proprietary technologies available for current and future collaborators. Pursuant to the ActoGeniX Purchase Agreement, the former members of ActoGeniX received an aggregate of 965,377 shares of the Company's common stock and $32,739 in cash in exchange for all membership interests of ActoGeniX. The results of ActoGeniX's operations subsequent to the acquisition date have been included in the consolidated financial statements. The fair value of the total consideration transferred was $72,474. The acquisition date fair value of each class of consideration transferred is presented below:
Cash | $ | 32,739 |
Common shares | 39,735 |
| $ | 72,474 |
The fair value of the shares of the Company's common stock issued was based on the quoted closing price of the Company's common stock as of the closing date of the acquisition. The estimated fair value of assets acquired and liabilities assumed at the acquisition date is shown below:
Cash | $ | 3,180 |
Other receivables | 305 |
Prepaid expenses and other | 31 |
Property, plant and equipment | 209 |
Intangible assets | 68,100 |
Other non-current assets | 23 |
Total assets acquired | 71,848 |
Accounts payable | 230 |
Accrued compensation and benefits | 196 |
Other accrued liabilities | 253 |
Deferred revenue | 732 |
Deferred tax liabilities | 612 |
Total liabilities assumed | 2,023 |
Net assets acquired | 69,825 |
Goodwill | 2,649 |
Total consideration | $ | 72,474 |
The acquired intangible assets primarily include in-process research and development, the fair value of which was determined using the multi-period excess earnings and with-and-without methods, which are both variations of the income approach that convert future cash flows to single discounted present value amounts. In August 2015, the Company re-evaluated the acquired in-process research and development and determined that it was placed in service as developed technology and began amortizing the original amount capitalized using a useful life of eighteen years. Goodwill, which is not expected to be deductible for tax purposes, represents the assembled workforce and anticipated buyer-specific synergies arising from the combination of the Company's and ActoGeniX's technologies. The Company incurred $418 of acquisition-related costs, of which $381 is included in selling, general and administrative expenses in the accompanying consolidated statement of operations for the nine months ended September 30, 2015. Unaudited Condensed Pro Forma Financial Information The results of operations of the 2015 acquisitions discussed above are included in the consolidated statements of operations beginning on the day after their respective acquisition dates. The following unaudited condensed pro forma financial information for the three and nine months ended September 30, 2015 is presented as if the acquisitions had been consummated on January 1, 2014:
| Three Months Ended September 30, 2015 |  | Nine Months Ended September 30, 2015
| Pro Forma
Revenues | $ | 53,754 |  |  | $ | 133,060 |
Loss before income taxes | (43,979 | ) |  | (66,686 | )
Net loss | (43,057 | ) |  | (66,319 | )
Net loss attributable to the noncontrolling interests | 816 |  |  | 2,940 |
Net loss attributable to Intrexon | (42,241 | ) |  | (63,379 | )

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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