SiNtx Technologies Inc (SINT)

[dp60]

Hi CL101

Below is a partial glimpse of the values assigned to LDR when Zimmer acquired them. Excerpted from Zimmer 2016 annual report p48-49:

Always interested to hear your estimates. Obviously amda will touch many more markets beyond spine and synergies are very interesting. You suggest IPRandD already at 200m (as opposed to 2m for LDR below). Do you (or others) have thoughts regarding an estimate for technology for example? Operational synergies that drop into Goodwill, are potentially very large as you've previously stated.

Best

glta

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LDR #'s (partial)

IPR&D 2m

Technology 452m

Customer relationships 118m

Trademarks, Tradenames 71m

other assets 76m

Goodwill (operational synergy) 482m

LDR Merger
On July 13, 2016, we completed our merger with LDR. We
paid cash of $1,138.0 million. The total amount of merger
consideration utilized for the acquisition method of accounting,
as reduced by the merger consideration paid to holders of
unvested LDR stock options and LDR stock-based awards of
$24.1 million, was $1,113.9 million.
The addition of LDR provides us with an immediate
position in the growing cervical disc replacement (“CDR”)
market. The combination positions us to accelerate the growth
of our Spine business through the incremental revenues
associated with entry into the CDR market and cross-portfolio
selling opportunities to both Zimmer Biomet and LDR customer bases.
The goodwill is generated from the
operational synergies and cross-selling opportunities we
expect to achieve from our combined operations. None of the
goodwill is expected to be deductible for tax purposes.
The purchase price allocation as of December 31, 2016 is
preliminary. The primary tasks to be completed related to our
purchase price accounting are finalizing tax accounts,including, but not limited to, the allocation of acquired intangible assets and goodwill on a jurisdictional basis. There
may be differences between the preliminary estimates of fair
value and the final acquisition accounting, which differences
could be material. The final estimates of fair value are
expected to be completed as soon as possible, but no later
than July 13, 2017.