UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTSForma Condensed Combined Financial Statements • December 29th, 2006 • Natus Medical Inc • Electromedical & electrotherapeutic apparatus
On October 16, 2006, Natus Medical Incorporated (the “Company”) entered into a Stock Purchase Agreement (the “Agreement”) with Jay A. Jones and Mary J. Jones, sole stockholders (the “Stockholders”) of Olympic Medical Corporation, a Washington state Corporation (“Olympic”), pursuant to which the Company purchased from the Stockholders all of the outstanding shares of capital stock of Olympic (the “Stock Purchase”). The purchase price for the acquisition consisted of a cash payment of approximately $16.6 million made at the closing for all outstanding shares of Olympic, and approximately $2.7 million of payments to Olympic employees concurrent with the acquisition. $1.5 million of the purchase price was placed in escrow as security for the Stockholders’ representations and warranties. The Agreement also provides for the payment of additional purchase consideration dependent upon sales results of a product in the final stage of the Food and Drug Administration’s approval process. If paid,
