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ACQUISITION AND DIVESTITURES | 6 Months Ended
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Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract] |
ACQUISITION AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES BMP Business Combination On February 16, 2022, the Company acquired 100% of the outstanding share capital of Business Mobility Partners, Inc. and Simon IoT LLC ("Simon IoT"), collectively, the “Acquired Companies” or “BMP Acquisition” which are industry-leading mobility service providers, to expand the Company’s services and solutions within the healthcare and life sciences industries (the “BMP Business Combination Agreement”). The transaction was funded by available cash and the issuance of the Company’s shares. Transaction costs for legal consulting, accounting, and other related costs incurred in connection with the acquisition of the Acquired Companies were $1.7 million. Included in the three and six months ended June 30, 2022, were $0 million and $1.4 million of transaction costs, which were included in selling, general and administrative expenses in the Company's consolidated statement of operations. The following table summarizes the allocation of the consideration transferred for the Acquired Companies, including the identified assets acquired and liabilities assumed as of the acquisition date. The purchase price allocation is preliminary and is subject to revision as additional information about the fair value of the assets acquired and liabilities assumed, including certain working capital and income taxes, become available.
(in '000 USD) | Fair Value
Cash, (net of closing cash of $1,995) and working capital adjustments | $ | 46,002 |
Fair value of KORE common stock issued to sellers (4,212,246 shares) | 23,295 |
Total consideration | $ | 69,297 |
Assets acquired: |
Accounts receivable | 3,303 |
Inventories | 1,323 |
Prepaid expenses and other receivables | 976 |
Property and equipment | 201 |
Intangible assets | 28,664 |
Total Assets acquired | 34,467 |
Liabilities assumed: |
Deferred tax liabilities | 7,391 |
Accounts payable and accrued liabilities | 2,638 |
Liabilities assumed | 10,029 |
Net identifiable assets acquired | 24,438 |
Goodwill (excess of consideration transferred over net identifiable assets acquired) | $ | 44,859 |
During the three months ended June 30, 2022, the Company paid a working capital adjustment of $0.9 million. Goodwill represents the future economic benefits that we expect to achieve as a result of the acquisition of the Acquired Companies. A portion of the goodwill resulting from the acquisition is deductible for tax purposes. The BMP Business Combination Agreement contains customary indemnification terms. Under the BMP Business Combination Agreement, a portion of the cash purchase price, approximately $3.45 million paid at closing is being held in escrow, for a maximum of 18 months from the closing date, to guarantee performance of general representations and warranties regarding closing amounts and to indemnify the Company against any future claims. The financial results of the Acquired Companies are included in the Company’s consolidated statements of operations from the date of acquisition. For the three months ended June 30, 2022, the amounts of revenue and net income included in the Company’s consolidated statements of operations were $15.0 million and $3.2 million, respectively. For the six months ended June 30, 2022, the amounts of revenue and net income included in the Company’s consolidated statements of operations were $20.8 million and $4.7 million, respectively. Unaudited pro forma information Had the acquisition of the Acquired Companies been completed on January 1, 2021, net revenue would have been $70.4 and $68.2 million and the net loss would have been $11.1 and $5.9 million for the three months ended June 30, 2022 and 2021, respectively. Had the acquisition of the Acquired Companies been completed on January 1, 2021, net revenue would have been $145.0 and $129.0 million and the net loss would have been $20.3 and $7.6 million for the six months ended June 30, 2022 and 2021, respectively. This unaudited pro forma financial information presented is not necessarily indicative of what the operating results actually would have been if the acquisition had taken place on January 1, 2021, nor is it indicative of future operating results. The pro forma amounts include the historical operating results of the Company prior to the acquisition, with adjustments factually supportable and directly attributable to the acquisition, primarily related to transaction costs, and the amortization of intangible assets. The pro forma net loss for the three and six months ended June 30, 2021 includes a non-recurring pro forma adjustment relating to the acquisition-related costs of $1.7 million.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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