4. BUSINESS COMBINATIONS The Companys acquisitions have been accounted for using the purchase method of accounting and the acquired companies results have been included in the accompanying consolidated financial statements from the dates of the acquisitions. Acquisition of VIZIYA On May 4, 2017, the Company acquired 100% of the outstanding shares of VIZIYA Corp. and its related entities (VIZIYA), a privately-held software and services provider to multi-national companies. VIZIYA develops enterprise asset management software solutions to enhance enterprise resource planning-based asset maintenance systems. The Company incurred transaction costs of $781 in connection with this acquisition which is recorded in Special charges. The purchase price was $25,633, net of cash acquired which included contingent consideration of $6,450. The contingent consideration relates to share and cash payments which will be made if certain earning targets are met by mid-2019. The fair value estimate for contingent considerations was determined using a Monte Carlo simulation based on the contractual terms of the instruments and risk-neutral valuation framework. Ten thousand Monte Carlo simulations were used for the analysis and the fair value of the payout is the average of these simulation outcomes. In connection with this acquisition, the Company issued 405,268 common shares with an aggregate value of $662 as of the closing date as partial consideration. The remainder of the purchase price was funded with the Companys cash reserves. The following table summarizes the fair value allocations of assets acquired and liabilities assumed as a part of this acquisition: Fair Value Cash $ 56 Property, plant and equipment 305 Prepaid expenses 234 Trade and other receivables 2,721 Intangible assets Developed software 10,000 Customer relationships 5,800 Brand 1,400 Goodwill 12,680 Accounts payable (286 ) Accrued liabilities and other (555 ) Income taxes payable (216 ) Deferred revenue (1,573 ) HST/ GST payable (18 ) Long-term debt (63 ) Deferred tax liabilities (4,796 ) Net assets acquired $ 25,689 Cash paid on closing $ 17,675 Shares issued 662 Fair value of contingent share considerations 2,650 Fair value of contingent cash considerations 3,800 Shareholder loan repaid 902 Total considerations transferred $ 25,689 Developed software is amortized over five years and customer relationships and brand are amortized over a seven year period. Expected future amortization is as follows: Customer relationships and Brand Developed software Total 2019 $ 1,029 $ 2,000 $ 3,029 2020 1,029 2,000 3,029 2021 1,029 2,000 3,029 2022 1,029 667 1,696 2023 1,029 - 1,029 2024 340 - 340 $ 5,485 $ 6,667 $ 12,152 Goodwill of $12,680 was recognized in the Enterprise software segment as a result of this acquisition, which is not deductible for tax purposes. The goodwill was due to expected synergies from combining the businesses. Acquisition of IRD On June 1, 2017, the Company acquired 100% of the outstanding shares of International Road Dynamics Inc. (IRD), a publicly-held provider of highway traffic management services, operating internationally in the Intelligent Transportation Systems (ITS) industry. IRD specializes in advanced traffic control, weight enforcement, bridge protection and toll management technologies. The Company incurred transaction costs of $901 in connection with this acquisition which is recorded in Special charges. The purchase price was $47,782 net of cash acquired and was funded with the Companys cash reserves. The following table summarizes the fair value allocations of assets acquired and liabilities assumed as a part of this acquisition: Fair Value Cash $ 2,078 Accounts receivable and other receivables 8,447 Embedded derivatives 52 Work in progress - unbilled revenue 4,711 Income taxes receivables 288 Inventory 5,883 Prepaid and other assets 1,977 Investment tax credits 670 Deferred tax asset 1,361 Property, plant and equipment 2,672 Intangible assets Customer relationships 8,100 Developed software 7,400 Brand 5,900 Backlog 1,300 Goodwill 15,820 Investment - XPCT 3,036 Bank indebtedness (2,182 ) Current portion of long term debt (95 ) Long-term debt (333 ) Accounts payable and accrued liabilities (6,277 ) Deferred revenue - short term (4,337 ) Deferred revenue - long term (465 ) Income taxes (29 ) Deferred tax liability (6,117 ) Net assets acquired $ 49,860 Cash paid on closing $ 47,209 Cash out considerations 2,651 Total considerations transferred $ 49,860 Customer relationships, brand and backlog are amortized over a period of seven years and developed software over five years. Expected future amortization related to this business acquisition is as follows: Customer relationships, Brand and Backlog Developed software Total 2019 $ 2,310 $ 1,495 $ 3,805 2020 2,310 1,495 3,805 2021 2,310 1,495 3,805 2022 2,310 622 2,932 2023 2,310 - 2,310 2024 966 - 966 $ 12,516 $ 5,107 $ 17,623 Goodwill recorded initially at $15,820 in the Intelligent systems segment was recognized as a result of this acquisition, which is not deductible for tax purposes. The goodwill was due to expected synergies from combining the businesses. The intangible assets and goodwill are subject to revaluation at the prevailing exchange rate at each quarter end. Acquisition of iCOMS On July 18, 2017, the Company acquired 100% of the outstanding shares of iCOMS Detections S.A. (iCOMS), a privately-held provider of traffic products and services. iCOMS is located in Brussels, Belgium and specializes in the design and manufacture of radar microwave detectors and equipment for the ITS market. iCOMS is integrated into the Companys wholly-owned subsidiary, IRD and forms part of the Intelligent systems segment. The Company incurred transaction costs of $41 in connection with this acquisition which is recorded in selling, general and administrative expenses. The purchase price of $1,184 was funded by a CDN$1,500 term loan through HSBC Bank Canada. The following table summarizes the fair value allocations of assets acquired and liabilities assumed as a part of this acquisition: Fair Value Cash $ 72 Accounts receivable 413 Other receivables 77 Inventory 459 Prepaid and other assets 19 Property, plant and equipment 24 Investment tax credits 563 Intangible assets Customer relationships 254 Developed software 251 Goodwill 246 Bank indebtedness (32 ) Accounts payable and accrued liabilities (532 ) Long term debt (458 ) Deferred tax liability (172 ) Net assets acquired $ 1,184 Cash paid on closing $ 865 Shareholder loan 319 Total considerations paid $ 1,184 Customer relationships are amortized over a period of seven years and developed software over five years. Expected future amortization related to this business acquisition is as follows: Customer relationships, Brand and Backlog Developed software Total 2019 $ 38 $ 52 $ 90 2020 38 52 90 2021 38 52 90 2022 38 17 55 2023 38 - 38 2024 7 - 7 $ 197 $ 173 $ 370 Goodwill of $246 was recognized in the Intelligent systems segment as a result of this acquisition, which is not deductible for tax purposes. The goodwill was due to expected synergies from combining the businesses.