Acquisitions G ECO A VIONICS A QUISITION On January 29, 2019, the Company announced that it had acquired GECO Avionics, LLC ("GECO"). Based in Mesa, Arizona, GECO has over twenty years of experience designing and manufacturing affordable safety-critical avionics and mission computing solutions. The Company acquired GECO for an all cash purchase price of $36,500 , which was funded through the revolving credit facility ("the Revolver"). The following table presents the net purchase price and the fair values of the assets and liabilities of GECO on a preliminary basis: Amounts Consideration transferred Cash paid at closing $ 36,500 Net purchase price $ 36,500 Estimated fair value of tangible assets acquired and liabilities assumed Accounts receivable $ 1,320 Inventory 1,454 Fixed assets 459 Accounts payable (217 ) Accrued expenses (239 ) Estimated fair value of net tangible assets acquired 2,777 Estimated fair value of identifiable intangible assets 10,900 Estimated goodwill 22,823 Estimated fair value of net assets acquired 36,500 Net purchase price $ 36,500 The amounts above represent the preliminary fair value estimates as of March 31, 2019 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates. The preliminary identifiable intangible asset estimates include customer relationships of $5,500 with a useful life of 11 years, developed technology of $4,800 with a useful life of ten years and backlog of $600 with a useful life of two years . Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill. The goodwill of $22,823 largely reflects the potential synergies and expansion of the Company's offerings across product lines and markets complementary to the Company's existing products and markets. The goodwill from this acquisition is reported under the Sensor and Mission Processing (SMP) reporting unit. Since GECO was a limited liability company, the acquisition is treated as an asset purchase for tax purposes. The Company has estimated the tax value of the intangible assets from this transaction and is amortizing the amount over 15 years for tax purposes. As of March 31, 2019 , the Company had $22,823 of goodwill deductible for tax purposes. The Company has not furnished pro forma information relating to GECO because such information is not material to the Company's financial results. The revenues and loss before income taxes from GECO included in the Company's consolidated results for the three months ended March 31, 2019 were $2,477 and $333 , respectively. The GECO results include expenses resulting from purchase accounting which include amortization of intangible assets and inventory step-up. G ERMANE S YSTEMS A QUISITION On July 31, 2018, the Company announced that it had entered into a membership interest purchase agreement (the "Purchase Agreement") and acquired Germane Systems, LC (Germane) pursuant to the terms of the Purchase Agreement. Based in Chantilly, Virginia, Germane is an industry leader in the design, development and manufacturing of rugged servers, computers and storage systems for command, control and intelligence (C2I) applications. The Company acquired Germane for an all cash purchase price of $45,000 , subject to net working capital and net debt adjustments. The Company funded the acquisition with borrowings obtained under the Revolver. On December 12, 2018 the Company and former owners of Germane agreed to post-closing adjustments totaling $1,244 , which decreased the Company's net purchase price. The following table presents the net purchase price and the fair values of the assets and liabilities of Germane on a preliminary basis: Amounts Consideration transferred Cash paid at closing $ 47,166 Working capital and net debt adjustment (1,244 ) Less cash acquired (193 ) Net purchase price $ 45,729 Estimated fair value of tangible assets acquired and liabilities assumed Cash $ 193 Accounts receivable 4,277 Inventory 8,575 Fixed assets 867 Other current and non-current assets 596 Accounts payable (3,146 ) Accrued expenses (1,229 ) Other current and non-current liabilities (232 ) Estimated fair value of net tangible assets acquired 9,901 Estimated fair value of identifiable intangible assets 12,910 Estimated goodwill 23,111 Estimated fair value of net assets acquired 45,922 Less cash acquired (193 ) Net purchase price $ 45,729 The amounts above represent the preliminary fair value estimates as of March 31, 2019 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates. The preliminary identifiable intangible asset estimates include customer relationships of $8,500 with a useful life of 11 years, developed technology of $4,200 with a useful life of eight years and backlog of $210 with a useful life of one year . Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill. The goodwill of $23,111 largely reflects the potential synergies and expansion of the Company's offerings across product lines and markets complementary to the Company's existing products and markets. The goodwill from this acquisition is reported under the Mercury Defense Systems (MDS) reporting unit. Since Germane was a limited liability company, the acquisition is treated as an asset purchase for tax purposes. The Company has estimated the tax value of the intangible assets from this transaction and is amortizing the amount over 15 years for tax purposes. As of March 31, 2019 , the Company had $22,402 of goodwill deductible for tax purposes. The Company has not furnished pro forma information relating to Germane because such information is not material to the Company's financial results. The revenues and income before income taxes from Germane included in the Company's consolidated results for the three months ended March 31, 2019 were $12,707 and $1,159 , respectively. The revenues and income before income taxes from Germane included in the Company's consolidated results for the nine months ended March 31, 2019 were $34,756 and $2,065 , respectively. The Germane results include expenses resulting from purchase accounting which include amortization of intangible assets and inventory step-up. T HEMIS C OMPUTER A QUISITION On December 21, 2017, the Company and Thunderbird Merger Sub, Inc., a newly formed, wholly-owned subsidiary of the Company (the Merger Sub), entered into a Merger Agreement (the Merger Agreement) with Ceres Systems (Ceres), the holding company that owned Themis Computer (Themis, and together with Ceres, collectively the Acquired Company). On February 1, 2018, the Company closed the transaction and the Merger Sub merged with and into Ceres with Ceres continuing as the surviving company and a wholly-owned subsidiary of Mercury (the Merger). By operation of the Merger, the Company acquired both Ceres and its wholly-owned subsidiary, Themis. Based in Fremont, California, Themis is a leading designer, manufacturer and integrator of commercial, SWaP-optimized rugged servers, computers and storage systems for U.S. and international markets. Under the terms of the Merger Agreement, the merger consideration (including payments with respect to outstanding stock options) consisted of an all cash purchase price of approximately $180,000 . The merger consideration is subject to post-closing adjustments based on a determination of closing net working capital, transaction expenses and net debt (all as defined in the Merger Agreement). The Company funded the acquisition with borrowings obtained under the Revolver. On July 13, 2018, the Company and former owners of Ceres agreed to post-closing adjustments totaling $700 , which decreased the Company's net purchase price. The following table presents the net purchase price and the fair values of the assets and liabilities of Themis: Amounts Consideration transferred Cash paid at closing $ 187,089 Working capital and net debt adjustment (1,274 ) Less cash acquired (6,810 ) Net purchase price $ 179,005 Fair value of tangible assets acquired and liabilities assumed Cash $ 6,810 Accounts receivable 7,713 Inventory 7,333 Fixed assets 479 Other current and non-current assets 2,896 Accounts payable (3,287 ) Accrued expenses (5,319 ) Other current and non-current liabilities (1,210 ) Deferred tax liability (14,307 ) Fair value of net tangible assets acquired 1,108 Fair value of identifiable intangible assets 71,720 Goodwill 112,987 Fair value of net assets acquired 185,815 Less cash acquired (6,810 ) Net purchase price $ 179,005 On February 1, 2019, the measurement period for Themis expired. The identifiable intangible asset estimates include customer relationships of $52,600 with a useful life of 12.5 years, developed technology of $17,150 with a useful life of 9.5 years and backlog of $1,970 with a useful life of one year . The goodwill of $112,987 largely reflects the potential synergies and expansion of the Company's offerings across product lines and markets complementary to the Company's existing products and markets. The goodwill from this acquisition is reported under the MDS reporting unit and is not tax deductible.