ACQUISITION |
6 Months Ended |
|---|---|
Jul. 31, 2026 | |
| ACQUISITION | |
| ACQUISITION | NOTE 14 – ACQUISITION On July 31, 2026, the Company acquired all of the membership interests of ValCor, a Connecticut limited liability company, for total consideration of approximately $9.4 million, consisting of $8.0 million in cash, $0.5 million of our common stock issued from treasury, and $0.9 million for the acquisition-date fair value of contingent consideration. Transaction costs related to the acquisition were not material. The purchase price is subject to customary post-closing adjustments, including those related to net working capital and indemnification obligations. ValCor provides installation, maintenance, and repair services for information, communication, and data networks serving defense and aerospace customers throughout New England. The acquisition expands the geographic footprint, business opportunities, and market presence of Company’s Teledata segment. The acquisition was accounted for as a business combination in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. The results of ValCor’s operations will be included in the Company’s consolidated financial statements and reported within the Teledata segment from the date of the acquisition. The preliminary allocation of the consideration transferred resulted in $4.7 million of acquired customer relationships and $2.6 million of goodwill. The estimated purchase price and allocation are preliminary and may change during the measurement period. The acquisition was not material to the Company's condensed consolidated financial statements, and accordingly, supplemental pro forma results of operations and the revenue and earnings of ValCor since the acquisition date have not been presented. |