Acquisition, Goodwill and Acquisition-Related Intangible Assets

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisition, Goodwill and Acquisition-Related Intangible Assets

Acquisitions

During the year ended December 31, 2022, we completed two acquisitions of private companies for total consideration of $158.9 million including $4.0 million in common stock and the remainder in cash. The purchase prices included $62.3 million of intangible assets, $77.5 million of goodwill and $19.1 million of net tangible assets acquired. We also incurred certain acquisition-related expenses of $4.7 million, which primarily consisted of retention bonuses to continuing employees as well as professional and consulting fees.

The purchase price allocation for one of the acquisitions has been finalized, while for the other acquisition it is still subject to continuing management analysis. No changes were made to the purchase price allocation for the three months ended March 31, 2023.

Goodwill

No changes were made to the carrying values of goodwill for the three months ended March 31, 2023.

Acquisition-Related Intangible Assets

Acquisition-related intangible assets were as follows (in thousands, except years):


	Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount				Weighted Average Remaining Useful Life (in years)
	December 31, 2022		Additions		March 31, 2023		December 31, 2022		Amortization		March 31, 2023		December 31, 2022		March 31, 2023
Developed technology	$	154,930	$	—	$	154,930	$	(79,036)	$	(6,820)	$	(85,856)	$	75,894	$	69,074	4.3
Customer relationships	54,620		—		54,620		(14,097)		(1,925)		(16,022)		40,523		38,598		5.4
Trade name	12,390		—		12,390		(6,602)		(570)		(7,172)		5,788		5,218		2.3
Others	5,720		—		5,720		(5,720)		—		(5,720)		—		—		0.0
Total	$	227,660	$	—	$	227,660	$	(105,455)	$	(9,315)	$	(114,770)	$	122,205	$	112,890	4.6

Amortization expense related to acquisition-related intangible assets was $9.3 million, and $7.3 million for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, future estimated amortization expense related to the acquisition-related intangible assets is as follows (in thousands):


	Future Amortization Expense
Remainder of 2023	$	24,123
2024	26,759
2025	19,642
2026	17,260
2027	13,436
Thereafter	11,670
Total	$	112,890