3. Acquisitions StarDust SAS (StarDust) On March 3, 2020, the Company acquired 100% of the equity of StarDust, for approximately $5.8 million (5.2 million based on a EUR into USD exchange rate of 1.1145). The acquisition was funded using cash on hand and borrowings under the Credit and Security Agreement. The France-based StarDust, is a leading provider of testing and quality assurance for digital services with offices in Marseille, France, and Montreal, Canada. StarDust offers a complete range of testing services, including functional, multilingual, operational, environmental, regression, and application benchmarking, covering digital services and website, software, mobile applications, and Internet of Things connected objects. The acquisition is expected to expand the Companys global testing capabilities. An earn-out of up to $1.1 million (1.0 million based on a EUR into USD exchange rate of 1.1145) can be earned, a portion of which will be payable in each period subject to the achievement of consolidated direct profit targets for fiscal 2020 and 2021. Additionally, for each 10,000 of consolidated direct profit achieved above the target, an additional 1,000 can be earned, with no maximum limit. There is no payout if the achievement is below the target threshold. The results of operations of StarDust have been included in the Companys consolidated financial results since the date of acquisition. As the Company has determined that the acquisition is not material to its existing operations, certain disclosures, including pro forma financial information, have not been included in this quarterly report on Form 10-Q. As of the date of filing this quarterly report on Form 10-Q, the preliminary purchase accounting has not yet been finalized due primarily to the timing of information being provided to our valuation specialist and the pending receipt of a preliminary valuation report for certain assets and liabilities, including identified intangible assets. The Company expects to update this information in the third quarter. At June 26, 2020, the Company allocated value to current assets and liabilities based on book values at March 3, 2020, which approximates fair value. The remaining purchase price is tentatively allocated to goodwill. Tech-IT PSF S.A. (Tech-IT) On February 6, 2019, the Company acquired 100% of the equity of Tech-IT for approximately $9.7 million. The acquisition was funded using cash on hand and borrowings under the Credit and Security Agreement. Tech-IT, located in Bertrange, Luxembourg, is a leading provider of software and hardware services, including consulting, infrastructure and software design and development, infrastructure integration, project management, and training. The acquisition of Tech-IT is expected to enable the Company to strengthen its market position in Luxembourg and broaden its portfolio to offer complete end-to-end IT solutions. The results of operations of Tech-IT have been included in the Companys consolidated financial results since the date of acquisition. As the Company has determined that the acquisition is not material to its existing operations, certain disclosures, including pro forma financial information, have not been included in this quarterly report on Form 10-Q. An earn-out of up to a maximum of $1.7 million (1.5 million based on a EUR into USD exchange rate of 1.1386) can be earned, a portion of which will be payable in each period subject to the achievement of direct profit targets for fiscal 2018, 2019, and 2020. There is no payout if the achievement on the target is below the threshold. The fair value as of the February 6, 2019 acquisition date was determined to be $0.6 million, and was $0.7 million as of June 26, 2020 . Approximately $0.4 million and $0.3 million of the remaining contingent consideration liability is recorded in other current liabilities and other long-term liabilities, respectively, on the June 26, 2020 condensed consolidated balance sheet. The acquisition date fair value of the consideration for the acquisition of Tech-IT consisted of the following as of February 6, 2019 : (amounts in thousands) Cash consideration $ 9,678 Fair value of contingent consideration 569 Fair value of purchase consideration $ 10,247 The following table summarizes the allocation of the aggregate purchase consideration to the fair value of the assets acquired and liabilities assumed as of February 6, 2019: (amounts in thousands) Assets Acquired: Cash $ 1,217 Accounts receivable 4,491 Prepaids &amp; other 1,122 Property &amp; equipment 98 Acquired intangibles 4,099 Goodwill 5,331 Total assets acquired $ 16,358 Liabilities Assumed: Accounts payable $ 2,378 Accrued compensation 172 Other short-term liabilities 2,447 Deferred income taxes 1,114 Total liabilities assumed 6,111 Net assets acquired $ 10,247 The purchase consideration for the acquisition was allocated to the assets acquired and liabilities assumed based upon their respective fair values. The excess consideration was recorded as goodwill, which is not deductible for income tax purposes. (amounts in thousands) Fair Value Estimated Useful Life Trademarks $ 683 2 years Customer relationships 3,416 8 years Fair value of purchase consideration $ 4,099 The Company incurred acquisition-related legal and consulting fees and amortization of intangible assets of approximately $0.2 million and $0.4 million in the 2020 second quarter and year-to-date period, respectively, and less than $0.1 million in both the 2019 second quarter and year-to-date periods, which were recorded as a component of selling, general, and administrative expenses in the condensed consolidated statements of income. The purchase price allocation for this acquisition has been finalized. Soft Company SAS (Soft Company) On February 15, 2018, the Company acquired 100% of the equity of Soft Company for approximately $16.9 million (13.6 million based on a EUR into USD exchange rate of 1.2392). The acquisition was funded using cash on hand and borrowings under the Companys Credit and Security Agreement. Soft Company, located in Paris, France, is an IT consulting company that specializes in providing IT services to finance, insurance, telecom, and media services companies. The acquisition of Soft Company is expected to enable the Company to expand its position in Europe and enhance its service offerings. The Company has a contingent consideration liability related to an earn-out provision of which a portion will be payable in each period subject to the achievement by Soft Company of certain revenue and EBIT targets for fiscal 2017, 2018, and 2019. There is no payout if the achievement on either target is below a certain target threshold. The fair value as of the February 15, 2018 acquisition date was determined to be $2.0 million. The fair value of the remaining contingent consideration liability, which is recorded in other current liabilities on the condensed consolidated balance sheet, was approximately $0.8 million as of June 26, 2020, and is expected to be paid in 2020. The results of operations of Soft Company have been included in the Companys consolidated financial results since the date of acquisition. As the Company has determined that the acquisition is not material to its existing operations, certain disclosures, including pro forma financial information, have not been included in this quarterly report on Form 10-Q. The Company incurred amortization of intangible assets of approximately $0.1 million and $0.3 million in the 2020 second quarter and year-to-date period, respectively, and incurred acquisition-related legal and consulting fees, adjustments to the fair value of the earn-out liability, and amortization of intangible assets of $0.5 million and $0.9 million in the 2019 second quarter and year-to-date period, respectively, which were recorded as a component of selling, general, and administrative expenses in the condensed consolidated statements of income.