Perimeter Group Inc.

4. BUSINESS COMBINATIONS

2026 Acquisitions

On January 22, 2026, the Company acquired 100% of the shares of MMT, which is included within the Company’s Specialty Products segment. Based in Charlotte, North Carolina, MMT is a provider of automated, process-driven medical device manufacturing solutions, offering vertically integrated capabilities spanning process development, technical solutions, equipment applications and aftermarket support. The acquisition was made to expand the Company’s manufacturing capabilities and leverage MMT’s expertise in automation and precision manufacturing, which directly addresses the specialized needs of the medical device manufacturing industry. The consideration transferred consisted of $682.3 million in cash, net of cash acquired.

The Company accounted for the transaction as a business combination using the acquisition method and recorded the estimated fair values of the assets acquired and liabilities assumed in the condensed consolidated balance sheet, including accounts receivable, inventories, intangible assets, goodwill, right-of-use assets, contract assets, accounts payable, contract liabilities and lease liabilities. The excess of consideration transferred over the estimated fair value of net assets acquired was recorded as goodwill. The Company used a relief from royalty method to calculate the fair value of the tradename and technology and patents intangible assets and an income approach to calculate the fair value of the customer relationships (the multi-period excess earnings method) and backlog (discounted cash flow / lost-profits method) intangible assets.

Goodwill of $306.0 million was recognized as a result of expected synergies, assembled workforce and other intangible benefits, of which approximately $117.9 million is expected to be deductible for tax purposes. In determining the fair value of the identifiable tangible and intangible assets acquired as of the acquisition date, the Company used assumptions including projected revenue and gross profit, customer attrition rates, contributory asset charges, discount rate, annual replacement rate and royalty rate. Some of these inputs are unobservable and therefore represent Level 3 fair value measurements.

The preliminary acquisition accounting is based upon the Company’s estimates of fair value. The estimates and assumptions are subject to change during the measurement period. The primary areas of the preliminary acquisition accounting that are not yet finalized relate to the following: 1) deferred income taxes or liabilities, 2) valuation of certain intangible and tangible assets, and 3) net working capital settlement that is subject to final adjustment as the Company evaluates information during the measurement period. The Company believes that the information gathered to date provides a reasonable basis for estimating the preliminary fair values of assets acquired and liabilities assumed. The Company will continue to evaluate these items until they are satisfactorily resolved and adjust the acquisition accounting accordingly, within the allowable measurement period (not to exceed one year from the date of acquisition), as defined by ASC 805, Business Combinations. During the nine months ended September 30, 2026, the Company recorded measurement period adjustments of $2.2 million related primarily to deferred tax balances as additional information became available regarding facts and circumstances that existed as of the acquisition date. The adjustment resulted in a corresponding adjustment to goodwill. Acquisition related costs incurred by the Company as the acquirer, primarily legal and advisory fees, totaled $10.3 million and were expensed as incurred during the nine months ended September 30, 2026. Acquisition related costs are presented in other operating expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss).

As of September 30, 2026, the Company allocated the total purchase price consideration between tangible assets, identified intangible assets, liabilities and goodwill as follows:

The following table presents the details of the intangible assets acquired in connection with this business combination during the nine months ended September 30, 2026 (dollars in thousands), which will be amortized over their estimated useful lives:

On July 30, 2026, the Company acquired Monaco Enterprises (“Monaco”), a provider of proprietary, mission-critical life safety and incident management systems for U.S. Government facilities, which is included within the Company’s Fire Safety segment. The acquisition was made to expand the Company’s products and services that support critical and complex customer missions across a range of niche applications. The consideration transferred consisted of $117.1 million in cash, net of cash acquired. The Company accounted for the transaction as a business combination under ASC 805 using the acquisition method and recorded the estimated fair values of the assets acquired and liabilities assumed in the condensed consolidated balance sheet, including inventories, intangible assets, property, plant and equipment, and goodwill.

The following table presents the details of the intangible assets acquired in connection with this business combination (dollars in thousands), which will be amortized over their estimated useful lives:

The preliminary allocation of the estimated fair value of the assets acquired and liabilities assumed resulted in $66.0 million of goodwill, recognized as a result of expected synergies, assembled workforce and other intangible benefits. The preliminary acquisition accounting is not yet finalized as the Company evaluates information to complete the valuation of intangible assets and settle working capital during the measurement period. The Company expects $13.8 million of goodwill to be deductible for tax purposes.

2025 Acquisitions

On March 28, 2025, the Company acquired substantially all of the assets and technical data rights of certain electro-optical product lines from a third party, which met the definition of a business, for a total cash purchase price of $10.0 million. The product lines are integrated into the Company’s IMS business within the Specialty Products segment. The Company used the acquisition method of accounting for the transaction and has reflected the value of the acquired assets and liabilities assumed in the accompanying condensed consolidated balance sheets, including inventories, intangible assets, property, plant and equipment, goodwill and contractual liabilities. The $0.6 million of goodwill and $2.1 million of other intangible assets recognized for the acquisition are deductible for tax purposes over 15 years.

On September 12, 2025, the Company acquired substantially all of the assets and technical data rights of certain electronic product lines from a third party, which met the definition of a business, for a total cash purchase price of $12.0 million. The product lines are integrated into the Company’s IMS business within the Specialty Products segment. The Company used the acquisition method of accounting for the transaction and has reflected the value of the acquired assets and liabilities assumed in the accompanying condensed consolidated balance sheets, including inventories, intangible assets, property, plant and equipment, and goodwill. The $1.2 million of goodwill and $7.5 million of other intangible assets recognized for the acquisition are deductible for tax purposes over 15 years.