Business Acquisitions |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||
| Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||
| Business Acquisitions | Business AcquisitionsDuring April and May 2022, the Company completed three insignificant strategic acquisitions of MP2020, Inc., also referred to as MFG.com ("MFG"), Linear, and MakerOS, Inc. ("MakerOS"), collectively the "2022 acquisitions." The following table summarizes the total consideration for the 2022 acquisitions:
The holdback consideration represents the portion of the purchase price to be paid within 12 months from the respective closing dates, subject to reduction for certain indemnifications and other potential obligations of the acquired businesses. The fair value of the earnout consideration liability for the Linear acquisition was determined using a Monte Carlo simulation based on Linear's revenue performance for the 12 months ending December 31, 2022. The estimated fair value at acquisition was $2,900. During 2022, the Company recognized a non-cash gain of $1,824 as a result of the actual revenue performance of Linear for the 12 months ended December 31, 2022. As of March 31, 2023 the estimated fair value of the earnout consideration was $1,076 and is included in accrued expenses and other liabilities within the unaudited condensed consolidated balance sheet. The earnout was paid in cash and equity in April 2023. There is no earnout consideration for the MFG or MakerOS acquisitions.
The Company has accounted for the MFG and Linear acquisitions as a business combination in accordance with ASC Topic 805, Business Combinations ("ASC 805"), and the acquisition of Maker OS as an asset purchase. The net assets acquired in the acquisitions was $12,890 which includes $5,903 of net intangible assets and $4,451 of goodwill.
The Company has determined that the impact of these acquisitions was not material to its condensed consolidated financial statements; therefore, separate presentation of revenue and earnings since the acquisition date and pro forma information are not required nor included herein.
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