For the three months ended March 31, 2025, the Company completed one business combination for aggregate consideration of $11.7 million, net of cash acquired. The total purchase consideration was allocated as follows: $0.7 million to acquired intangible assets, $11.6 million to goodwill, and $0.6 million to net tangible liabilities. The acquired intangible assets consisted primarily of customer relationships and trademarks, which were valued using the income approach. Of the goodwill recognized with this acquisition, none is expected to be deductible for tax purposes.

The Company’s transaction costs related to this 2025 acquisition were not material. The financial results of this acquisition were included in the Condensed Combined Financial Statements from the acquisition date.

Some of the Company’s acquisitions contain contingent consideration which is based on the outcome of the acquired company earnings for a predetermined period. These contingent consideration liabilities are included in Other current liabilities and Other noncurrent liabilities in the Condensed Combined Balance Sheets, depending on the expected timing of settlement. Additions to contingent consideration recognized in connection with acquisitions are non-cash in nature. Payments of contingent consideration are cash in nature. Change in fair value is recognized in Other operating (income) expense, net in the Condensed Combined Statements of Operations.


Balance as of December 31, 2024	$	61,017
Additions	—
Payments	—
Change in fair value	(1,538)
Balance as of March 31, 2025	$	59,479

Balance as of December 31, 2025	$	6,067
Additions	—
Payments	(606)
Change in fair value	(2,622)
Balance as of March 31, 2026	$	2,839