Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 119

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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’ Representative named therein. Pursuant to the Deflecto Stock Purchase Agreement, Deflecto Purchaser purchased all of the issued and outstanding equity interests of Deflecto, upon the terms and subject to the conditions of the Deflecto Stock Purchase Agreement (such purchase and sale, together with the other transactions contemplated by the Deflecto Stock Purchase Agreement, the “Deflecto Transaction”).The Deflecto 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 other customary adjustments set forth in the Deflecto Stock Purchase Agreement. The Deflecto Purchase Price was funded with a combination of borrowings of the $48.0 million 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 Deflecto Transaction was accounted for as a business combination in accordance with ASC 805, Business Combinations.

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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 nine months ended September 30, 202