v3.26.1
BUSINESS COMBINATIONS
 12 Months Ended
Mar. 31, 2026
BUSINESS COMBINATIONS [Abstract]  
BUSINESS COMBINATIONS
17. BUSINESS COMBINATIONS
 
Bailiwick Services, LLC
 
On August 19, 2024, our subsidiary, ePlus Technology, inc., acquired 100% of the membership interests of Bailiwick Services, LLC (“Bailiwick”). Based near Minneapolis, Minnesota, Bailiwick is a provider of professional and managed services with nearly 30 years in the business. Bailiwick specializes in serving enterprise customers that operate large store, branch, and campus footprints predominantly in the retail, financial services, restaurant, and hospitality markets.
 
Our sum for consideration transferred is $124.9 million, which consists of $126.2 million paid in cash at closing, less $1.5 million cash acquired, plus $0.2 million paid in December 2024 to the sellers based on adjustments to a determination of the total net assets delivered. Our allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands):
 
     
   
Acquisition date amount
 
Accounts receivable
 $41,719 
Contract assets
  7,712 
Other assets
  20,669 
Identified intangible assets
  58,010 
Accounts payable and other liabilities
  (38,273) 
Contract liabilities
  (6,216) 
Total identifiable net assets
  83,621 
Goodwill
  41,305 
Total purchase consideration
 $124,926 
 
The identified intangible assets of $58.0 million consists of customer relationships of $49.3 million with an estimated useful life of ten years and trade name of $8.7 million with a preliminary useful life of seven years.
 
We recognized goodwill related to this transaction of $41.3 million, which was assigned to our professional services and product segments. The goodwill recognized in the Bailiwick acquisition is attributable to the acquired assembled workforce and expected synergies, none of which qualify for recognition as a separate intangible asset. The total amount of goodwill expected to be deductible for tax purposes is $44.4 million.
 
The amount of revenues and earnings of the acquiree since the acquisition date are not material. Likewise, the impact to the revenue and earnings of the combined entity for the current reporting period as though the acquisition date had been April 1, 2024, is not material.