13. Business Combination On March 20, 2012, the Company acquired a product line (existing technology, customer relationships, fixed assets and employees) to enhance the Company's product offerings in embedded timing and synchronization solutions for residential small cell solutions. This transaction was recorded as an acquisition of a business. The transaction price was approximately $2.4 million of which $1.4 million was paid in cash and approximately $1.0 million is contingent consideration payable as a royalty upon future sales of such products. The fair value of the contingent consideration arrangement at the acquisition date was $0.5 million. We estimated the fair value of the contingent consideration using a probability-weighted discounted cash flow model (See Note 2). The preliminary purchase price was determined as follows (amounts in thousands): Initial cash payment $ 1,400 Fair value of contingent consideration 540 Total $ 1,940 This preliminary purchase price was allocated to fixed assets and intangible assets based on their estimated fair values as follows (amounts in thousands): Fixed assets $ 50 Intangible assets 1,890 Total $ 1,940 The Company expects to complete the accounting for this transaction in the fourth quarter of fiscal 2012 after finalizing the estimated fair value of intangible assets and the estimated fair value of contingent consideration. Preliminary estimated fair value of Intangible assets acquired under the transaction consists of the following (in thousands): Existing technology (estimated useful live 4 years) $ 1,612 Customer relationships (estimated useful life 2 years) 278 Total $ 1,890 Pro forma results of operations have not been presented because the effect of the business combination described in this Note was not material to our condensed consolidated results of operations.