Subsequent Events

12 Months Ended

Dec. 31, 2019

20. Subsequent Events

The Company has evaluated subsequent events through the date of issuance of the consolidated financial statements for the year ended December 31, 2019. The subsequent events included the following:

On January 13, 2020, Quench acquired substantially all of the assets and assumed certain liabilities of Smart Water Solutions, LLC (“Smart Water Solutions”), a POU water filtration company based in Butler, New Jersey, pursuant to an asset purchase agreement. The estimated aggregate purchase price, subject to adjustments, was $1.2 million, which included approximately $1.1 million of cash and $0.1 million payable on the one-year anniversary of the transaction. The assets acquired consist primarily of in-place lease agreements and the related POU systems in the United States.

Due primarily to the timing of the acquisition and the complexities involved with determining fair value of assets acquired, the Company has not yet completed the allocation of the net assets acquired.

The revenues and related expenses from the acquired in-place lease agreements will be included in the Quench reportable segment from the date of acquisition. The Quench business completed the acquisition of Smart Water Solutions to expand its installed base of POU systems in the United States.

On February 5, 2020, effective February 3, 2020, Quench acquired substantially all of the assets and assumed certain liabilities of Krystal Kleer LLC (“Krystal Kleer”), a POU water filtration company based in Meridian, Connecticut, pursuant to an asset purchase agreement. The estimated aggregate purchase price, subject to adjustments, was $8.9 million, which included approximately $7.1 million of cash, $0.8 million payable on the one-year anniversary of the transaction and $1.0 million of acquisition contingent consideration. The assets acquired consist primarily of in-place lease agreements and the related POU systems in the United States.

The revenues and related expenses from the acquired in-place lease agreements will be included in the Quench reportable segment from the date of acquisition. The Quench business completed the acquisition of Krystal Kleer to expand its installed base of POU systems in the United States.

AquaVenture Holdings Ltd 10-K