NOTE 5   BUSINESS COMBINATIONS Siimpel Corporation In May 2010, Tessera completed its acquisition of Siimpel Corporation ( Siimpel ), a Delaware corporation and a developer and manufacturer of MEMS (Micro Electro Mechanical Systems) based camera solutions for mobile imaging applications for cash consideration of $15.0 million. Approximately $1.9 million of the consideration has been placed in escrow and is subject to forfeiture to satisfy indemnification obligations, if any, of the former stockholders of Siimpel. The escrow will expire in November 2011. As a result of the acquisition, Siimpel became a wholly owned subsidiary of the Company in a business combination transaction accounted for using the purchase method of accounting, with the results of the acquired entity included in the Imaging and Optics segment as of the acquisition date. This contributed to a purchase price in excess of the fair value of the underlying net assets and identified intangible assets acquired from Siimpel and, as a result, the Company has recorded goodwill in connection with this transaction. Preliminary purchase price allocation In accordance with the accounting guidance on business combinations, the total purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The preliminary allocation of the purchase price was based upon a preliminary valuation and the estimates and assumptions used are subject to change. Based upon the fair values acquired, the purchase price allocation is as follows (in thousands): Amount Estimated Useful Life (Years) Net tangible assets: Property and equipment, net $ 6,312 1-5 Other current assets 105 N/A Other assets 148 N/A Current liabilities (1,837 ) N/A Long-term liabilities (700 ) N/A 4,028 Identified intangible assets: Existing technology 3,000 9 Patents/core technology 1,800 14 In-process research and development 1,900 N/A Goodwill 4,272 N/A 10,972 Total preliminary purchase price $ 15,000 Approximately $4.0 million has b