NOTE 5  BUSINESS ACQUISITIONS Effective July 19, 2019, Transcat acquired Infinite Integral Solutions Inc. (IIS). IIS, headquartered in Mississauga, Ontario, Canada, is the owner and developer of the CalTree suite of software solutions for the automation of calibration procedures and datasheet generation. Total consideration for the shares of IIS was 1.4 million Canadian dollars, subject in part to the achievement of certain milestones. 0.6 million Canadian dollars was paid during the second quarter of fiscal year 2020 and is included as a business acquisition in the Consolidated Statement of Cash Flows. All of the purchase price has been preliminarily allocated to software and property and equipment. Due to the immaterial amount of pre-acquisition revenue and expenses, no pro forma table of results has been presented. Effective April 1, 2019, Transcat acquired substantially all of the assets of Gauge Repair Service (GRS), a California-based provider of calibration services. This transaction aligned with the Companys acquisition strategy of targeting businesses that expand the Companys geographic reach and leverages its infrastructure while also increasing the depth and breadth of the Companys service capabilities. Due to the immaterial amount of the purchase price of the GRS assets, it has been included in the purchases of property and equipment in the Consolidated Statement of Cash Flows. Effective August 31, 2018, Transcat acquired substantially all of the assets of Angels Instrumentation, Inc. (Angels), a Virginia-based provider of calibration services. This transaction aligned with the Companys acquisition strategy of targeting businesses that expand its geographic reach and leverages its infrastructure while also increasing the depth and breadth of the Companys service capabilities. The Company applies the acquisition method of accounting for business acquisitions. Under the acquisition method, the purchase price of an acquisition is assigned to the underlying tangible and intangible assets acquired and liabilities assumed based on their respective fair values at the date of acquisition. The Company uses a valuation hierarchy, as further described under Fair Value of Financial Instruments in Note 1 above, and typically utilizes independent third-party valuation specialists to determine the fair values used in this allocation. Purchase price allocations are subject to revision within the measurement period, not to exceed one year from the date of acquisition. All of the goodwill and intangible assets relating to the Angels acquisition have been allocated to the Service segment. Intangible assets related to the Angels acquisition are being amortized for financial reporting purposes on an accelerated basis over the estimated useful life of up to 10 years and are deductible for tax purposes. Amortization of goodwill related to the Angels acquisition is expected to be deductible for tax purposes only. The total purchase price paid for the assets of Angels was approximately $4.7 million, net of $0.1 million cash acquired. The following is a summary of the purchase price allocation, in the aggregate, to the fair value, based on Level 3 inputs, of Angels assets and liabilities acquired during the period presented: FY 2019 Goodwill $ 1,902 Intangible Assets  Customer Base &amp; Contracts 1,470 Intangible Assets  Covenant Not to Compete 130 3,502 Plus: Current Assets 786 Non-Current Assets 473 Less: Current Liabilities (24 ) Total Purchase Price $ 4,737 Certain of the Companys acquisition agreements, including Angels, include provisions for contingent consideration and other holdback amounts. The Company accrues for contingent consideration and holdback provisions based on their estimated fair value at the date of acquisition. As of September 28, 2019, $0.4 million of contingent consideration was unpaid and reflected in current liabilities on the Consolidated Balance Sheets. This $0.4 million contingent consideration was paid subsequent to September 28, 2019. $0.5 million of holdback amounts were paid during the first six months of fiscal year 2020. The results of the acquired businesses are included in Transcats consolidated operating results as of the dates the businesses were acquired. The following unaudited pro forma information presents the Companys results of operations as if the acquisition of Angels had occurred at the beginning of fiscal year 2019. The pro forma results do not purport to represent what the Companys results of operations actually would have been if the transaction had occurred at the beginning of the period presented or what the Companys operating results will be in future periods. (Unaudited) Six Months Ended September 29, 2018 Total Revenue $ 77,678 Net Income $ 3,494 Basic Earnings Per Share $ 0.49 Diluted Earnings Per Share $ 0.48 Effective June 12, 2018, Transcat acquired substantially all of the assets of NBS Calibration, Inc. (NBS), an Arizona-based provider of calibration services. This transaction aligned with the Companys acquisition strategy of targeting businesses that expand the Companys geographic reach and leverage its infrastructure while also increasing the depth and breadth of the Companys service capabilities. Due to the immaterial amount of the purchase price of the NBS assets, it has been included in the purchases of property and equipment in the Consolidated Statement of Cash Flows. During each of the first six months of fiscal year 2020 and fiscal year 2019, acquisition costs of less than $0.1 million were recorded as incurred as general and administrative expenses in the Consolidated Statements of Income.