Company: HCKT
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-030037
Chunk: 48

Company: HACKETT GROUP, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 48
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counted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values.

40

THE HACKETT GROUP, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

1. Basis of Presentation and General Information (continued)Business CombinationsFor transactions that are considered business combinations, the purchased assets and assumed liabilities are recorded at fair value at acquisition date, and identifiable intangible assets are recorded at fair value. Costs directly related to the business combinations are recorded as expenses as they are incurred. Fair values are subject to refinement during the measurement period of up to one year after the closing date of an acquisition as information relative to closing date fair values become available         On September 23, 2024, the Company acquired 100% of the equity of LeewayHertz Technologies Private Limited (“LeewayHertz”), a technology consulting company based in India, focused on AI technology solutions for a provisional purchase consideration of $7.8 million subject to a working capital achievement. Leeway’s founder, one of LeewayHertz’s owners, was hired by the Company to serve as its executive vice president of the AI practice.           Since the acquisition was only recently completed, the allocation of the purchase price is preliminary and will likely change in future periods as fair value estimates of the assets acquired and liabilities assumed are finalized, including those primarily related to working capital, property and equipment, intangible assets, and taxes.  The final determination of the fair values will be completed within the one-year measurement period.          The following table summarizes the fair value of the assets acquired and liabilities assumed: 

          Amount

          Assets / Liabilities
           
          (in thousands)

          Cash
           
          $
          1,020

          Current assets

          2,081

          Intangible assets

          2,500

          Current liabilities

          (2,587
          )

          Other liability

          (432
          )

          Deferred tax liability

          (652
          )

          Net assets acquired
           
          $
          1,930

          Consideration
           
          $
          7,806

          Goodwill
           
          $
          5,876

                As a result, the provisional excess of the purchase price over the assets acquired resulted in goodwill of $5.9 million. Additionally, the Company recognized provisional intangible assets of $2.5 million, with a remaining weighted average