3 Acquisitions I n February 2012, the Company acquired the net assets of its Israel sales and service distributor for $ 6 million in cash. The Company has allocated $2 million of the purchase price to intangible assets comprised of customer relationships. The Company is amortizing the customer relationships over ten years. The remaining purchase price of $4 million has been accounted for as goodwill. The goodwill is deductible for tax purposes. In Jan uary 2012 , the Company acquired all of the outstanding capital stock of Baehr Thermoanalyse GmbH (" Baehr ") , a German manufacturer of a wide-range of thermal analyzers, for $12 million in cash and the assumption of $1 million of debt . Baehr was acquired to expand TA's thermal analysis instrument product offering and to leverage the Company's distribution channels. The purchase price of the acquisition was allocated to tangible and intangible assets and assumed liabilities based on their estimated fair values. The Company has allocated $4 million of the purchase price to intangible assets comprised of technology and $1 million to customer relationships and other intangibles . The Company is amortizing the customer relationships and the acquired technology over ten years. Th e remaining purchase price of $7 million has been accounted for as goodwill. The goodwill is not deductible for tax purposes. These acquisitions were accounted for under the accounting standard for business comb inations and the results were included in the Company's consolidated results from the respective acquisition date s . The principal factor that resulted in recognition of goodwill was that the purchase price for both acquisition s were based in part on cash flow projections assuming the integration of any acquired technology , distribution channels and products with our products, which is of considerably greater value than utilizin g each of the acquired companies ' technology , customer access or products on a stand-alone basis. The goodwill also includes value assigned to assembled w