Quarterly report pursuant to Section 13 or 15(d)

Business Acquisitions (Tables)

v3.19.3
Business Acquisitions (Tables)
9 Months Ended
Sep. 30, 2019
Business Combinations [Abstract]  
Summary of consideration transferred in the acquisition
The consideration transferred in the acquisition was as follows:
 
 
Preliminary Estimate
Cash consideration
 
$
11,173

Purchase consideration liability
 
6,240

Contingent consideration liability
 
7,580

Working capital adjustment
 
70

Total
 
$
25,063


The preliminary consideration transferred in the acquisition was as follows:
 
 
Preliminary Estimate
Cash consideration
 
$
299,370

Stock consideration
 
222,484

Less: cash acquired
 
(6,360
)
Total estimated fair value of consideration transferred, net of cash acquired
 
$
515,494


The preliminary consideration transferred in the acquisition was as follows:
 
 
Preliminary Estimate
Cash consideration
 
$
17,500

Contingent consideration liability
 
8,300

Total
 
$
25,800


Summary of the estimated fair values of the assets acquired and liabilities assumed
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
 
 
Preliminary Estimate
Total tangible assets acquired
 
$
13

Total liabilities assumed
 
(1,600
)
Identifiable intangible assets
 
12,400

Goodwill
 
14,987

Total net assets acquired
 
$
25,800


The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
 
 
Preliminary Estimate
 
Measurement Period Adjustments
 
Revised Estimate
Cash and cash equivalents
 
$
6,360

 
$

 
$
6,360

Accounts receivable
 
3,782

 

 
3,782

Prepaid expenses and other current assets
 
969

 

 
969

Other non-current assets
 
4,274

 

 
4,274

Property and equipment, net
 
6,057

 

 
6,057

Operating lease right-of-use assets, net
 
1,688

 

 
1,688

Identifiable intangible assets
 
217,000

 

 
217,000

Goodwill
 
353,085

 
(406
)
 
352,679

Total assets acquired
 
593,215

 
(406
)
 
592,809

Accounts payable and accrued expenses
 
(2,166
)
 
406

 
(1,760
)
Operating lease liabilities
 
(2,012
)
 

 
(2,012
)
Deferred income taxes
 
(59,643
)
 

 
(59,643
)
Deferred revenue
 
(7,540
)
 

 
(7,540
)
Total liabilities assumed
 
(71,361
)
 
406

 
(70,955
)
Total net assets acquired
 
$
521,854

 
$

 
$
521,854


The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
 
 
Preliminary Estimate
Total tangible assets acquired
 
$
144

Total liabilities assumed
 
(629
)
Identifiable intangible assets
 
4,100

Goodwill
 
21,448

Total net assets acquired
 
$
25,063


Summary of intangible assets acquired, estimated useful lives and amortization method
A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows:
 
 
Preliminary Estimate
 
Estimated Useful Life in Years
 
Amortization Method
Customer lists
 
$
181,000

 
10-16
 
Accelerated
Proprietary technologies
 
25,000

 
5
 
Straight-line
Trade names
 
11,000

 
6
 
Straight-line
Total
 
$
217,000

 
 
 
 

A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows:
 
 
Preliminary Estimate
 
Estimated Useful Life in Years
 
Amortization Method
Customer list
 
$
9,100

 
10
 
Accelerated
Proprietary technology
 
3,300

 
5
 
Straight-line
Total
 
$
12,400

 
 
 
 

A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows:
 
 
Preliminary Estimate
 
Estimated Useful Life in Years
 
Amortization Method
Proprietary technology
 
$
4,100

 
4
 
Straight-line

Business acquisition, pro forma information
Pro forma financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place as of the beginning of 2018.
 
 
Three Months Ended September 30,
 
Nine Months Ended
September 30,
 
 
2018
 
2019
 
2018
Revenues
 
$
217,916

 
$
679,355

 
$
644,207

Net income (loss) attributable to Envestnet, Inc.
 
(5,358
)
 
(22,754
)
 
(172
)
Net income (loss) per share attributable to Envestnet, Inc.:
 
 
 
 
 
 
Basic
 
$
(0.11
)
 
$
(0.44
)
 
$

Diluted
 
$
(0.11
)
 
$
(0.44
)
 
$