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 $64,100. The Acquisition consideration is subject to adjustments based on a determination of closing net working capital, cash, indebtedness and other TCI liabilities. 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 Companys existing credit facilities. The TCI acquisition broadens and strengthens the Companys 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. TCIs technology and products are expected to be a valuable addition to the Companys 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 $ 4,332 Accounts receivable 5,822 Other assets, net 303 Property, plant and equipment 3,464 Amortizable intangible assets 36,400 Goodwill 17,843 Current liabilities (4,064) Net purchase price $ 64,100 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. 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 Motions 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 others products into more fully integrated system solutions and Allied Motions ability to utilize TCIs management knowledge in providing complementary product offerings to the Companys customers. The goodwill resulting from the TCI acquisition is tax deductible. Pro forma Condensed Combined Financial Information The following presents the Companys unaudited pro forma financial information for the three months ended March 31, 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. March 31, 2018 Revenues $ 86,989 Net income $ 4,544 Diluted earnings per share $ 0.49 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 Companys results would actually have been had these transactions actually occurred on the date presented or to project the combined companys 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 Companys 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.