Annual report pursuant to Section 13 and 15(d)

NOTE 17: - ACQUISITION OF UEC ELECTRONICS, LLC

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NOTE 17: - ACQUISITION OF UEC ELECTRONICS, LLC
12 Months Ended
Dec. 31, 2016
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
NOTE 17:–                      ACQUISITION OF UEC ELECTRONICS, LLC

In April 2014, the Company entered into a stock purchase agreement pursuant to the terms of which the Company purchased all of the outstanding membership interests of UEC Electronics, LLC (“UEC”) from the seller of UEC, a company owned by UEC’s two top managers (the “Acquisition”) for total consideration of $36.7 million. The Acquisition provided an expanded Power Systems Division footprint for the Company.

The Acquisition was accounted for under the acquisition method accounting. Accordingly, all assets and liabilities acquired, were recorded at their estimated fair market values as of the date of acquisition. Goodwill of $15.1 million was recorded as the purchase premium after adjusting for the fair value of net assets acquired and represents the accretive and synergistic value of the acquisition to the Company.

The revenue and net income of UEC from the date of acquisition through December 31, 2014 was $27,193,926 and $2,544,315, respectively.  Acquisition related expenses of approximately $813,000 were recognized as general and administrative expenses in the year ended December 31, 2014.

Pro forma revenue and net income for the year ended December 31, 2014 for the Company was $116,113,345 and $7,026,327, respectively.  Pro forma results presented reflect: (1) amortization relating to fair value estimates of intangible assets; (2) elimination of UEC expenses that were not part of the transaction; and (3) incremental interest expense on new long term debt incurred in connection with the transaction as though the transaction occurred as of January 1, 2013.