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Business Acquisitions | 3 Months Ended
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Mar. 31, 2024
Business Combinations [Abstract] |
Business Acquisitions | NOTE 3 – Business Acquisitions Maglab AG Acquisition On February 6, 2023, we acquired 100% of the outstanding shares of Maglab AG (”Maglab”). Maglab has deep expertise in magnetic system design and current measurement solutions for use in e-mobility, industrial automation, and renewable energy applications. Maglab’s domain expertise coupled with CTS’ commercial, technical and operational capabilities position us to advance our status as a recognized innovator in electric motor sensing and controls markets. The final purchase price of $7,717 has been allocated to the fair values of assets and liabilities acquired as of February 6, 2023. The purchase price was increased by $3 for the final settlement of net working capital during the second quarter of 2023. The following table summarizes the final purchase price, the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition:
|  | Consideration Paid |
Cash paid, net of cash acquired of $14 |  | $ | 4,153 |
Contingent consideration |  |  | 3,564 |
Purchase price |  | $ | 7,717 |
|  | Fair Values at February 6, 2023 |
Accounts receivable |  | $ | 348 |
Inventory |  |  | 43 |
Other current assets |  |  | 41 |
Property, plant and equipment |  |  | 35 |
Goodwill |  |  | 4,997 |
Intangible assets |  |  | 2,860 |
Fair value of assets acquired |  |  | 8,324 |
Less fair value of liabilities acquired |  |  | (607 | )
Purchase price |  | $ | 7,717 |
Goodwill represents value the Company expects to be created by combining the operations of the acquired business with the Company's operations, including the expansion of customer relationships, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is expected to be deductible for tax purposes. The following table summarizes the carrying amounts and weighted average lives of the acquired intangible assets:
|  | Carrying Value |  |  | Weighted Average Amortization Period |
Customer lists/relationships |  | $ | 2,800 |  |  |  | 13.0 |
Technology and other intangibles |  |  | 60 |  |  |  | 3.0 |
Total |  | $ | 2,860 |  |  |  |
All contingent consideration is payable in cash and is based on success factors related to the integration process as well as upon the achievement of annual revenue and customer order targets through the fiscal year ending December 31, 2025. The Company recorded $3,564 as the acquisition date fair value of the contingent consideration based on the estimate of the probability of achieving the performance targets. This amount is also reflected as an addition to the purchase price. The contingent consideration has a maximum payout of $6,300. Supplemental pro forma disclosures are not included as the amounts are deemed to be immaterial.

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