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Acquisitions | 12 Months Ended
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Dec. 31, 2021
Acquisitions |
Acquisitions | Note 3. Acquisitions 2021 Acquisitions In the second quarter of 2021, we completed the acquisitions of Critical Transport Solutions Australia (CTSA) in Australia and F-airGate in Belgium to further enhance our existing global temperature-controlled supply chain capabilities in the APAC and EMEA regions. The combined purchase consideration was $6.8 million, of which $2.7 million was allocated to goodwill and $2.8 million to identifiable intangible assets. The combined purchase consideration also included a contingent consideration liability of $0.7 million. The acquisitions include earnout provisions subject to achieving future EBITDA targets through 2025 and certain employment requirements, as defined in the share purchase agreements. The goodwill amount represents synergies related to our existing logistics management services. Through December 31, 2021, the Company recorded combined measurement period adjustments of $0.8 million, mainly comprised of deferred tax adjustments. The acquired goodwill and intangible assets are not deductible for tax purposes. 2020 Acquisitions CRYOPDP Acquisition On October 1, 2020, the Company completed its acquisition of CRYOPDP for a cash consideration of €48.3 million (approximately $57.0 million),subject to customary closing working capital and other adjustments. This acquisition was funded with existing cash on hand. CRYOPDP, based in France, is a leading global provider of innovative temperature-controlled logistics solutions to the clinical research, pharmaceutical and cell and gene therapy markets. CRYOPDP conducts its business activities in the Americas, EMEA and APAC. As a result of the CRYOPDP Acquisition, the Company has extended its solutions to include broader temperature-controlled logistics and specialty courier services and has significantly expanded its global network through CRYOPDP’s 22 facilities in 12 countries. The CRYOPDP Acquisition was accounted for under the acquisition method of accounting in accordance with FASB ASC Topic 805, “Business Combinations,” and, therefore, the total purchase price was allocated to the identifiable tangible and intangible assets acquired and the liabilities assumed based on their respective fair values on the acquisition date. Fair values were determined by management based in part on an independent valuation performed by a third-party valuation specialist and required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that the Company believes to be reasonable; however, actual results may differ from these estimates. The following table summarizes the allocation of the purchase price as of the acquisition date (in thousands):
​ | ​ | ​ | ​
Total purchase consideration paid |  | $ | 56,971
​ | ​ | ​ | ​
Purchase price allocation: | ​ |  |
Cash and cash equivalents | ​ |  | 8,346
Accounts receivable | ​ |  | 10,603
Inventories | ​ |  | 644
Prepaid and other current assets | ​ |  | 2,905
Property and equipment | ​ |  | 2,863
Operating lease right-of-use assets | ​ |  | 1,856
Intangible assets | ​ |  | 28,235
Other long-term assets | ​ |  | 569
Accounts payable and other accrued expenses | ​ |  | (11,110)
Accrued compensation and related expenses | ​ |  | (1,194)
Deferred revenue | ​ |  | (370)
Note payable | ​ |  | (4,690)
Operating lease liabilities | ​ |  | (1,856)
Deferred tax liability | ​ |  | (5,311)
Other long-term liabilities | ​ |  | (64)
Total identifiable net assets | ​ |  | 31,426
Goodwill | ​ |  | 25,545
​ | ​ | $ | 56,971
​ The following table summarizes the estimated fair values of CRYOPDP’s identifiable intangible assets at the date of acquisition and their estimated useful lives and amortization expense based on their respective useful lives (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Annual
​ | ​ | Estimated | ​ | Estimated | ​ | Amortization | ​ | Amortization
​ |  | Fair Value |  | Useful Life |  | Method |  | Expense
Software | ​ | $ | 3,578 |  | 7 |  | Straight-line | ​ | $ | 511
Customer relationships | ​ |  | 5,871 |  | 11.5 |  | Straight-line | ​ |  | 511
Agent network | ​ |  | 8,219 |  | 4 |  | Straight-line | ​ |  | 2,055
Trade name/trademarks | ​ |  | 10,567 |  | Indefinite |  | — | ​ |  | —
Total | ​ | $ | 28,235 | ​ | ​ |  |  | ​ | $ | 3,077
​ Goodwill is calculated as the excess of the purchase price over the fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies, and other benefits that we believe will result from combining the operations of CRYOPDP with our operations. The goodwill recognized of $25.5 million is not deductible for income tax purposes. Acquisition-related transaction costs (included in selling, general and administrative expenses) totaled approximately $1.4 million. The final purchase price for the CRYOPDP Acquisition was $56.7 million after receiving a $0.3 million net working capital settlement from the sellers during the year ended December 31, 2021. As of October 1, 2020, the Company recorded net assets acquired of $57.0 million, including goodwill of $25.5 million. Through September 30, 2021, the Company recorded measurement period adjustments of $1.2 million, mainly comprised of $0.8 million deferred tax adjustments and $0.3 million fair value on the note payable, resulting in adjusted goodwill of $24.3 million and adjusted net assets acquired of $56.7 million. MVE Acquisition On October 1, 2020, the Company completed its acquisition of Chart Industries, Inc.’s MVE cryobiological storage business for a cash consideration of $317.5 million, subject to customary closing working capital and other adjustments. The Company financed a portion of the closing cash payment of the MVE Acquisition with the net proceeds of the Blackstone Private Placement, as further discussed in Note 15. MVE is a global leader in manufactured vacuum insulated products and cryogenic freezer systems for the life sciences industry. MVE has manufacturing and distribution operations in the Americas, EMEA and APAC. As a result of the MVE Acquisition, the Company has extended its integrated logistics solutions to provide a broad range of cryogenic dewars and freezers to the life sciences industry. The MVE Acquisition was accounted for under the acquisition method of accounting in accordance with FASB ASC Topic 805, “Business Combinations,” and, therefore, the total purchase price was allocated to the identifiable tangible and intangible assets acquired and the liabilities assumed based on their respective fair values on the acquisition date. Fair values were determined by management based in part on an independent valuation performed by a third-party valuation specialist and required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that the Company believes to be reasonable; however, actual results may differ from these estimates. ​ The following table summarizes the allocation of the purchase price as of the acquisition date (in thousands):
​ | ​ | ​ | ​
Total purchase consideration paid |  | $ | 317,470
​ | ​ | ​ | ​
Purchase price allocation: | ​ |  |
Cash and cash equivalents | ​ |  | 2,955
Accounts receivable | ​ |  | 10,645
Inventories | ​ |  | 10,627
Other current assets | ​ |  | 256
Property and equipment | ​ |  | 9,050
Operating lease right-of-use assets | ​ |  | 2,154
Intangible assets | ​ |  | 184,991
Other non-current assets | ​ |  | 358
Accounts payable and other accrued expenses | ​ |  | (6,036)
Accrued compensation and related expenses | ​ |  | (1,139)
Operating lease liabilities | ​ |  | (2,160)
Deferred tax liabilities | ​ |  | (393)
Other long-term liabilities | ​ |  | (64)
Total identifiable net assets | ​ |  | 211,244
Goodwill | ​ |  | 106,226
​ | ​ | $ | 317,470
​ The following table summarizes the estimated fair values of MVE’s identifiable intangible assets and their estimated useful lives and amortization expense based on their respective useful lives (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Annual
​ | ​ | Estimated | ​ | Estimated | ​ | Amortization | ​ | Amortization
​ |  | Fair Value |  | Useful Life |  | Method |  | Expense
Order backlog |  | ​ | 2,600 |  | 0.125 |  | Straight-line | ​ | $ | —
Customer relationships |  | ​ | 118,600 |  | 14.5 |  | Straight-line | ​ |  | 8,179
Developed technology |  | ​ | 28,700 |  | 12 |  | Straight-line | ​ |  | 2,392
Land use rights |  | ​ | 2,291 |  | 38 |  | Straight-line | ​ |  | 63
Trade name/trademarks |  | ​ | 32,800 |  | Indefinite |  | — | ​ |  | —
Total | ​ | $ | 184,991 | ​ | ​ |  |  | ​ | $ | 10,634
​ Goodwill is calculated as the excess of the purchase price over the fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies, and other benefits that we believe will result from combining the operations of MVE with our operations. Of the $106.2 million goodwill recognized, approximately $62.3 million is deductible for income tax purposes. Acquisition-related transaction costs (included in selling, general and administrative expenses) totaled approximately $8.8 million. The final purchase price for the MVE Acquisition was $318.0 million after paying a $0.5 million net working capital settlement to the sellers during the year ended December 31, 2021. As of October 1, 2020, the Company recorded net assets acquired of $317.5 million, including goodwill of $106.2 million. Through September 30, 2021, the Company recorded a measurement period adjustment of $0.5 million relating to the final working capital settlement paid to the sellers, resulting in adjusted goodwill of $106.7 million and adjusted net assets acquired of $318.0 million. ​

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