Intangible Assets, Net

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

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:


			March 31, 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	$	(252,313)	$	337,767	$	590,080	$	(241,189)	$	348,891
Proprietary technologies			103,324		(48,168)		55,156		85,324		(43,004)		42,320
Trade names			33,700		(25,747)		7,953		33,700		(24,515)		9,185
Total intangible assets	$	727,104	$	(326,228)	$	400,876	$	709,104	$	(308,708)	$	400,396

There were no material retirements of intangible assets during the three months ended March 31, 2022 and 2021.

Amortization expense was as follows:


	Three Months Ended
	March 31,
			2022		2021

		(in thousands)
Amortization expense			$	17,520	$	16,478