NOTE 2  ACQUISITIONS In addition to the Tracker UK acquisition in February 2019, we completed two additional acquisitions, LoJack Mexico and Synovia, during the three months ended May 31, 2019. Pursuant to our business combinations accounting policy, we estimated the preliminary fair values of net tangible and intangible assets acquired, and the excess of the consideration transferred over the aggregate of such fair values was recorded as goodwill. The preliminary fair values of net tangible assets and intangible assets acquired were based upon preliminary valuations. Our estimates and assumptions reflected in such preliminary valuations are subject to change within the measurement period (up to one year from the acquisition date). The primary areas that remain preliminary relate to the fair values of intangible assets acquired, certain tangible assets and liabilities acquired, certain legal matters, deferred income taxes and goodwill. We expect to continue to obtain information to assist in determining the fair values of the net assets acquired during the measurement period. The following are the preliminary purchase price allocations as of May 31, 2019 for the three acquisitions (in thousands): Tracker UK LoJack Mexico Synovia Purchase price $ 13,097 $ 14,306 $ 29,500 Add debt paid at closing - - 20,296 Less cash acquired (66 ) (1,586 ) (1,396 ) Net cash paid 13,031 12,720 48,400 Less amount released from escrow (973 ) - - Net consideration 12,058 12,720 48,400 Add previously held interest - 2,021 - Fair value of net assets and liabilities assumed: Current assets other than cash $ 3,549 $ 4,485 $ 10,354 Property and equipment 1,835 4,425 22,449 Customer relationships 2,354 7,000 16,700 Trade name 2,354 - 1,600 Developed technology 1,830 - 3,800 Deferred tax assets - - 5,643 Other non-current assets 104 1,301 - Current liabilities (3,111 ) (2,361 ) (4,959 ) Due to factors - - (19,832 ) Deferred revenue (3,162 ) (4,507 ) (4,319 ) Deferred tax liability (963 ) (1,039 ) - Other non-current liabilities (201 ) - - Total fair value of net assets acquired 4,589 9,304 31,436 Goodwill $ 7,469 $ 5,437 $ 16,964 Tracker UK Effective February 25, 2019, we acquired Tracker UK, a LoJack licensee, for a total purchase price of 10.0 million, or $13.1 million, which was funded from our cash on hand. As a result of the acquisition, Tracker UK became a wholly-owned subsidiary and is consolidated with our financial statements beginning February 25, 2019 as a component of our Software and Subscription Services reportable segment. We paid a premium (i.e., goodwill) over the fair value of the net tangible and identified intangible assets acquired, as we believe Tracker UKs highly recognizable brand and extensive law enforcement relationships across the United Kingdom will help us to drive our European expansion by leveraging our complete portfolio of telematics devices, cloud and software services to develop advanced connected car solutions targeting auto dealers, OEMs, insurance providers and other enterprise customers. This acquisition enables us to integrate our European operations around advanced SVR and telematics solutions to support key enterprise customer opportunities on a pan-European basis. The goodwill arising from the acquisition of Tracker UK is not deductible for income tax purposes. LoJack Mexico On March 19, 2019, we acquired LoJack Mexico, the exclusive licensee of LoJack technology for the Mexican market. LoJack Mexico will leverage our telematics and software-as-a-service solutions to expand product offering to its substantial subscriber base as well as serve auto dealers and OEMs, insurance providers and leasing companies throughout Mexico. The agreement is to purchase the 87.5% of the LoJack Mexico shares not currently owned by CalAmp for a purchase price of $14.3 million. Our previously held 12.5% equity interest in LoJack Mexico was determined to have a fair value of $2,021,000 at acquisition date which resulted in a gain of $321,000, which was recorded as investment income in our condensed consolidated statements of comprehensive income (loss) for the three months ended May 31, 2019. LoJack Mexico is consolidated with our financial statements effective March 19, 2019 as a component of our Software and Subscription Services reportable segment. Synovia In April 2019, we acquired Synovia, a North American market leader in fleet safety and management for K-12 school bus and state and local government fleets, for a total purchase price of $49.8 million. Combined with the recent acquisitions of Tracker UK and LoJack Mexico, the Synovia acquisition expands our fleet management and vehicle safety services portfolio. This acquisition also accelerates our transformation to high-value subscription-based services. Synovia is consolidated with our financial statements effective April 12, 2019 as a component of our Software and Subscription Services reportable segment. In conjunction with the acquisition of Synovia, we assumed the rights and obligations under certain revenue assignment arrangements with several financial institutions (the Factors). Pursuant to the terms of the arrangements, Synovia sold to the Factors rights to all future revenues of certain subscription contracts on a non-recourse basis for credit approved accounts. Under ASC 805, Business Combination , we recorded the amounts due to the Factors as a debt obligation at fair value in the opening balance and the outstanding amount is presented as part of our long-term debt in our condensed consolidated balance sheet (see Note 8). The fair value of this debt of $20.1 million was determined using a pre-tax cost of debt of 4.7% at the time of acquisition of Synovia by CalAmp. We paid a premium (i.e., goodwill) over the fair value of the net tangible and identified intangible assets acquired, as we believe we will expand our fleet management and vehicle safety services portfolio and will increase our customer reach by brining high-value and low-churn subscribers. The goodwill arising from the acquisition of Synovia is deductible for income tax purposes. We incurred approximately $1.1 million of total acquisition-related costs for the three months ended May 31, 2019 and $0.9 million in fiscal 2019. The acquisition-related costs were primarily legal expenses, which were recorded as part of our general and administrative expenses. Pro forma financial information for the three months ended May 31, 2019 and 2018 for any of the acquired companies are not disclosed as the results are not material to our condensed consolidated financial statements.