On March 1, 2026, Intuitive acquired the da Vinci and Ion distribution businesses previously operated by ab medica, Abex, Excelencia Robótica, and their affiliates for approximately $533.1 million in cash, net of the effective settlement of existing receivables of $32.6 million. No gain or loss was recognized upon settlement, as amounts were stated at fair value. As a result of the acquisition, Intuitive assumed direct distribution responsibilities for Italy, Spain, Portugal, Malta, San Marino, and associated territories.

The preliminary purchase consideration allocation has been updated for measurement period adjustments identified as of June 30, 2026. The fair values of the assets acquired and liabilities assumed were as follows (in millions):


	Amount
Cash	$	37.5
Accounts receivable, net	91.8
Other acquired current assets	35.8
Property, plant, and equipment, net	60.5
Intangible and other assets	279.8
Goodwill	218.0
Total assets acquired	723.4

Accounts payable, accrued liabilities, and other current liabilities	81.0
Deferred tax liabilities – long-term	60.6
Other long-term liabilities	20.8
Total liabilities assumed	162.4

Fair value of assets acquired and liabilities assumed	$	561.0

The purchase consideration was allocated to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. The fair value of certain assets acquired and liabilities assumed are subject to change over the measurement period as additional information is received. During the three months ended June 30, 2026, the Company recorded an immaterial receivable related to a preliminary adjustment to the purchase consideration. The Company expects to finalize the allocation of purchase consideration as soon as practicable and no later than one year from the acquisition date.

The following table summarizes the components of the intangible assets acquired and their estimated weighted-average useful lives (in millions, except years):


	Estimated Fair Values		Weighted-Average Useful Lives (in Years)
Customer relationships	$	195.5	6.6
Reacquired distribution rights	17.8		0.3
Non-compete agreements	6.1		3.0
Total acquisition-related intangible assets	$	219.4

The goodwill recognized is primarily attributable to the assembled workforce acquired, expected operational synergies, and the strategic benefits of establishing a direct commercial presence in the applicable geographic market. The goodwill is not deductible for income tax purposes.

The pro forma financial information assuming the acquisition had occurred as of the beginning of the calendar year prior to the year of acquisition, as well as the revenue and earnings generated during the current year, were not significant for disclosure purposes.


	Amount
Balance as of December 31, 2025	$	370.3
Acquisition activity	218.0
Foreign currency translation and other activity	(7.7)
Balance as of June 30, 2026	$	580.6

The following table summarizes the components of gross intangible assets, accumulated amortization, and net intangible assets balances (in millions):


	As of June 30, 2026						As of December 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Patents and developed technology	$	164.6	$	(158.1)	$	6.5	$	192.8	$	(182.8)	$	10.0
Customer relationships	206.6		(26.3)		180.3		28.2		(27.1)		1.1
Distribution rights and others	23.1		(17.9)		5.2		—		—		—
Total definite-lived intangible assets	$	394.3	$	(202.3)	$	192.0	$	221.0	$	(209.9)	$	11.1
In-process research and development	6.0		—		6.0		6.0		—		6.0
Total intangible assets	$	400.3	$	(202.3)	$	198.0	$	227.0	$	(209.9)	$	17.1

Amortization expense related to intangible assets was $24.0 million and $3.2 million for the three months ended June 30, 2026, and 2025, respectively. Amortization expense related to intangible assets was $31.1 million and $6.6 million for the six months ended June 30, 2026, and 2025, respectively.

The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, measurement-period adjustments to intangible assets, changes in foreign currency exchange rates, impairments of intangible assets, accelerated amortization of intangible assets, and other events.