Company: ACTG
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000934549-25-000042
Chunk: 30

Company: ACACIA RESEARCH CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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o Transaction closed simultaneously with the execution of the Deflecto Stock Purchase Agreement on October 18, 2024. Under the terms and conditions of the Deflecto Stock Purchase Agreement, the aggregate consideration paid to the Deflecto Sellers in the Deflecto Transaction consisted of $103.7 million, subject to certain working capital, debt and 

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other customary adjustments set forth in the Deflecto Stock Purchase Agreement. The Deflecto Purchase Price was funded with a combination of borrowings of a $48.0 million secured term loan (the “Deflecto Term Loan”) and cash on hand. A portion of the Deflecto Purchase Price is being held in escrow to indemnify Deflecto Purchaser against certain claims, losses and liabilities.The following table summarizes the consideration transferred to acquire Deflecto and the recognized amounts of identifiable assets and acquired liabilities assumed at the acquisition date (in thousands):Fair value of consideration transferred:Cash$59,898 Closing indebtedness21,391 Transaction expenses paid to Sellers15,290 Adjustment and indemnity escrow amount1,185 Total consideration$97,764 Identifiable assets acquired and liabilities assumed:Cash and cash equivalents$11,316 Accounts receivables15,705 Inventories17,617 Prepaid expenses and other current assets4,498 Deferred tax assets11,588 Property, plant and equipment, net23,203 Operating lease, right-of-use assets8,841 Customer relationships22,400 Trade names and trademarks 9,100 Developed technology1,000 Favorable leases704 Accounts payable(8,836)Accrued expenses(17,172)Liability for sales tax and fees(7,000)Current lease liabilities(2,614)Long-term lease liabilities(6,354)Deferred tax liabilities(3,031)Total identifiable net assets$80,965 Goodwill$16,799 During the three months ended March 31, 2025, the goodwill arising from the acquisition was decreased by $3.8 million due to measurement period adjustments. The measurement period adjustments were related to proceeds received from working capital adjustments of $1.2 million and increases in the preliminary valuations of the acquired assets and liabilities comprising: $2.2 million in customer relationships, $500,000 in trade names and trademarks, $315,000 in deferred tax assets, and $416,000 in deferred tax liabilities.The estimates for acquired assets