National Holdings Corporation |
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National Holdings Corporation |
3. National Holdings Corporation On September 9, 2016, the Company, purchased approximately 56.6% of National’s common stock, par value $0.02 per share at the purchase price of $3.25 per share in cash. On April 27, 2016, the Company entered into an Agreement and Plan of Merger with National and a wholly owned subsidiary of the Company, providing for the acquisition of National (the “Merger Agreement”). Pursuant to the Merger Agreement, and upon the terms and subject to the conditions described therein, the Company agreed to cause its wholly owned subsidiary to commence a tender offer for all the issued and outstanding shares of National’s common stock, par value $0.02 per share, at a purchase price of $3.25 per share (the “Offer”). Upon expiration of the Offer on September 9, 2016 (and the subsequent settlement period), a total of approximately 7 million shares were validly tendered, representing approximately 56% of the outstanding shares of National on a fully-diluted basis. The aggregate consideration paid by Fortress in the Offer was approximately $22.9 million, without giving effect to related transaction fees and expenses. Fortress funded the payment with cash on hand.
The following table summarizes the fair value of assets acquired and liabilities assumed at the date of the acquisition ($ in thousands):
The Company recognized $18.6 million of goodwill and does not expect goodwill to be deductible for tax purposes. Intangible assets consist of trademark and customer lists acquired in the merger under the purchase method of accounting are recorded at fair value net of accumulated amortization since the purchase date. Amortization is calculated using the straight-line and accelerated methods over the following estimated useful lives:
The gross carrying amounts related to acquired intangible assets as of December 31, 2017 and 2016 are as follows ($ in thousands):
The future amortization of these intangible assets is as follows ($ in thousands):
The Company reviews its finite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of finite-lived intangible asset may not be recoverable. Recoverability of a finite-lived intangible asset is measured by a comparison of its carrying amount to the undiscounted future cash flows expected to be generated by the asset. If the asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no indicators of impairment during the periods ended September 30, 2017 and 2016, respectively. |