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ACQUISITIONS | 6 Months Ended
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Jun. 30, 2019
ACQUISITIONS |
ACQUISITIONS | 2. ACQUISITIONS TCI On December 6, 2018, the Company entered into a Unit Purchase Agreement (the “Purchase Agreement”) with TCI, LLC, a Wisconsin limited liability company (“TCI”), and the members of TCI (“Sellers”), pursuant to which Allied Motion acquired 100% of the issued and outstanding common units of TCI from Sellers (the “Acquisition”) in a transaction valued at $64,135. The Acquisition consideration was subject to adjustments based on a determination of closing net working capital, cash, indebtedness and other TCI liabilities. During the second quarter of 2019, these adjustments were settled and the purchase price was finalized. A portion of the Acquisition consideration was placed in escrow to secure payment of any post-closing adjustments to the purchase price and to secure the Sellers’ indemnification obligations to Allied Motion. Cash consideration was funded from borrowings on the Company’s existing credit facilities. The TCI acquisition broadens and strengthens the Company’s position as a leading global diversified solutions provider in the controlled motion market. TCI has adjacent technologies and capabilities that enable more efficient and longer life solutions for motion devices in a wide variety of demanding applications. TCI’s technology and products are expected to be a valuable addition to the Company’s expanding suite of solution offerings. The Company incurred $413 of transaction costs related to the acquisition of TCI. Transaction costs are included in business development expenses on the consolidated statements of income and comprehensive income. The Company accounted for the acquisition pursuant to ASC 805, “Business Combinations.” The preliminary allocation of the purchase price paid for TCI is based on estimated fair values of the assets acquired and liabilities assumed of TCI as of December 6, 2018 (in thousands):
Inventory |  | $ | 3,718
Accounts receivable |  |  | 5,822
Other assets, net |  |  | 303
Property, plant and equipment |  |  | 3,464
Amortizable intangible assets |  |  | 36,400
Goodwill |  |  | 18,457
Current liabilities |  |  | (4,029)
Net purchase price |  | $ | 64,135
The purchase price excluded any cash on hand and any debt of TCI. The allocation of the purchase price is preliminary as the valuation of both the tangible and identifiable intangible assets is being finalized. During the second quarter 2019, the purchase price allocation has been revised to reflect an updated valuation of inventory. The intangible assets acquired consist of customer lists, technology and a trade name, which are being amortized over 16, 15 and 19 years, respectively. Goodwill generated in the acquisition is related to the assembled workforce, synergies between Allied Motion’s other TUs and TCI that are expected to occur as a result of the combined engineering knowledge, the ability of each of the TUs to integrate each other’s products into more fully integrated system solutions and Allied Motion’s ability to utilize TCI’s management knowledge in providing complementary product offerings to the Company’s customers. The goodwill resulting from the TCI acquisition is tax deductible. Pro forma Condensed Combined Financial Information The following presents the Company’s unaudited pro forma financial information for the three months ended June 30, 2018 giving effect to the acquisition of TCI as if it had occurred at January 1, 2018. Included in the pro forma information is: the additional depreciation and amortization resulting from the valuation of amortizable tangible and intangible assets; interest on borrowings made by the Company; amortization of deferred finance costs incurred to issue the borrowings; and removal of acquisition related transaction costs.
|  | Three months ended |  | Six months ended
|  | June 30, 2018 |  | June 30, 2018
Revenues |  | $ | 91,836 |  | $ | 178,825
Net income |  | $ | 4,997 |  | $ | 9,541
Diluted earnings per share |  | $ | 0.54 |  | $ | 1.03
The pro forma adjustments do not reflect adjustments for anticipated operating efficiencies that the Company expects to achieve as a result of this acquisition. The pro forma financial information is for informational purposes only and does not purport to present what the Company’s results would actually have been had these transactions actually occurred on the date presented or to project the combined company’s results of operations or financial position for any future period. Maval OE Steering On January 19, 2018, the Company purchased substantially all of the operating assets associated with the original equipment steering business of Maval Industries, LLC (“Maval”) for $13,312 in cash. Consistent with the Company’s strategy to provide higher level system solutions, the addition of the Maval OE steering (“Maval OE Steering”) product line enables Allied to provide a fully integrated steering system solution to its customers. The following table represents the purchase price allocation and summarizes the aggregate estimated fair value of the assets acquired (in thousands):
|  | January 19, 2018
Intangible assets |  | $ | 3,870
Goodwill |  |  | 6,001
Assets acquired (net of liabilities assumed) |  |  | 3,441
Fair value of net assets acquired |  | $ | 13,312
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired. The purchase price allocation was completed during the fourth quarter 2018. The goodwill resulting from the Maval OE Steering acquisition is tax deductible.

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