Company: CWAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001866368-25-000018
Chunk: 79

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 post-combination service will be recognized as expense over the post-combination service periods on a straight-line basis.

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We have accounted for this transaction as a business combination and allocated the fair value of the consideration to the tangible and intangible assets acquired as well as liabilities assumed, based on their estimated fair values. The excess of the purchase price over the preliminary fair values of these identifiable assets and liabilities was recorded as goodwill. The allocated preliminary fair value is summarized as follows (in thousands): Fair ValueAccounts receivable, net $16,769 Prepaid expenses and other current assets 1,460 Property, equipment and software, net 201 Operating lease right-of-use assets, net 2,597 Goodwill338,206 Intangible assets, net 166,900 Other assets 431 Accounts payable (1,272)Accrued expenses and other current liabilities (8,806)Deferred revenue(12,347)Operating lease liability, current portion (482)Operating lease liability, less current portion(2,251)Deferred tax liabilities, net(13,641)Total Merger Consideration for acquisition of business, net of cash acquired$487,765 We expect to finalize the allocation of the purchase consideration as soon as practicable, pending finalization of taxes and any other adjustments related to acquired assets or liabilities, but no later than 12 months from the Beacon Acquisition Date. Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating Beacon into our business. The goodwill is not expected to be deductible for income tax purposes. The following table presents details of the preliminary fair values of identified intangible assets acquired (in thousands, except years):Fair ValueEstimated Useful LifeDeveloped technology$130,000 8 yearsClient relationships33,500 10 yearsTrade name / Trademarks3,400 5 yearsTotal$166,900 The identified intangible assets are measured at fair value as Level 3 in accordance with the fair value hierarchy.  Acquisition-related costs incurred were $2.4 million and $4.1 million during the three and six months ended June 30, 2025, respectively. There were no acquisition-related costs incurred during the three and six months ended June 30, 2024. These costs mainly consisted of professional fees and administrative costs and were expensed as incurred within "General and administrative" in our condensed consolidated statements of operations. The results of Beacon