Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets, Net

v3.22.2
Goodwill and Intangible Assets, Net
 6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net 
Changes in the carrying amount of goodwill were as follows:

  Envestnet Wealth Solutions Envestnet Data & Analytics Total
(in thousands)
Balance at December 31, 2021
 $ 621,876  $ 303,278  $ 925,154 
401kplans.com acquisition 11,378  —  11,378 
Foreign currency translation —  (478) (478)
Balance at June 30, 2022
 $ 633,254  $ 302,800  $ 936,054 

Procurement of Technology Solutions

On June 21, 2021, the Company entered into a purchase agreement with a privately held company to acquire the technology solutions being developed by this privately held company for a purchase price of $18.0 million, including an advance of $3.0 million. The Company closed the transaction and paid the remaining $15.0 million in February 2022. This proprietary technology asset has been integrated into the Envestnet Data & Analytics segment and is being amortized over an estimated useful life of five years. In addition, the agreement includes an earn-out payment of $10.0 million based upon the achievement of certain target metrics within five years after the date of the Company’s launch of the technology solutions. The parties have agreed to renegotiate the terms of the earn-out payment.

Intangible assets, net consisted of the following:
  June 30, 2022 December 31, 2021
  Gross   Net Gross   Net
  Carrying Accumulated Carrying Carrying Accumulated Carrying
  Amount Amortization Amount Amount Amortization Amount
(in thousands)
Customer lists $ 590,080  $ (263,212) $ 326,868  $ 590,080  $ (241,189) $ 348,891 
Proprietary technologies 106,324  (53,682) 52,642  85,324  (43,004) 42,320 
Trade names 33,700  (26,979) 6,721  33,700  (24,515) 9,185 
Total intangible assets $ 730,104  $ (343,873) $ 386,231  $ 709,104  $ (308,708) $ 400,396 

There were no material retirements of intangible assets during the three and six months ended June 30, 2022 and 2021.

Amortization expense was as follows:
  Three Months Ended Six Months Ended
  June 30, June 30,
  2022 2021 2022 2021
(in thousands)
Amortization expense $ 17,645  $ 17,502  $ 35,165  $ 33,980