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Business Combinations (Tables)

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Summary of Consideration Transferred

The acquisition date fair value of the purchase consideration for the acquisition was $56.7 million, and consisted of the following (in thousands):

			Fair Value
Cash consideration (net of working capital adjustments)			$	49,677
Contingent consideration			7,007
Total purchase consideration			$	56,684

Summary of Purchase Price Allocation

In accordance with the acquisition method of accounting, the purchase consideration has been allocated to the assets acquired and liabilities assumed based on their fair values on the date of the acquisition as follows (in thousands):

Accounts receivable			$	1,275
Prepaid expenses and other current assets			17
Intangible assets			26,120
Goodwill			29,337
Accounts payable			(18)
Accrued expenses			(47)
Net assets acquired			$	56,684

Summary of Acquired Intangible Assets

The identifiable intangible assets for the transaction are definite lived assets. The intangible assets are measured at fair value on a nonrecurring basis and are based primarily on significant unobservable inputs and thus represent a Level 3 measurement in the valuation hierarchy as defined in ASC 820. The acquired intangible asset categories, fair value, and amortization periods, were as follows (in thousands):

			Useful lives						Fair Value
Customer relationships			7 years						$	18,460
Trademarks, trade names, and domain names			10 years						7,660
									$	26,120

Summary of Revenue and Pretax Loss

Revenue and pretax loss of CHT included in the Company’s results from the acquisition date of April 1, 2022 through June 30, 2022 are as follows (in thousands):

Total revenues			$	2,134
Pretax loss			$	(803)

The following pro forma financial information summarizes the combined results of operations for the Company and CHT, as though the companies were combined as of the beginning of the Company’s fiscal 2021. The unaudited pro forma financial information was as follows (in thousands):

						Three months ended June 30,												Six Months Ended June 30,
(in thousands)						2022						2021						2022						2021
Total revenues						$	103,449					$	164,504					$	252,318					$	345,068
Pretax (loss) income						$	(12,398)					$	(227)					$	(19,606)					$	10

X

- Definition

Tabular disclosure of the nature and amount of any material, nonrecurring adjustments directly attributable to the business combination(s) included in the reported pro forma revenue and earnings (supplemental pro forma information).

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