Tenable Holdings Inc

6. Acquisitions, Goodwill and Intangible Assets

Business Combinations

In June 2024, we acquired Eureka Security, Inc. ("Eureka"), a provider of data security posture management ("DSPM") for cloud environments. Adding Eureka's DSPM capabilities to our solutions provides customers a view into their organization's cloud data security footprint, fight policy drift and misconfigurations that put data at risk, and enables customers to continuously improve their security posture over time. We acquired 100% of Eureka's equity through a share purchase agreement for total cash consideration of $29.2 million, net of $0.4 million cash acquired.

Cash consideration, net of cash acquired, was preliminarily allocated as follows:

We allocated $6.9 million to Eureka's proprietary technology with an estimated useful life of 5 years.

We are still finalizing the allocation of the purchase price for Eureka, which may change as additional information becomes available.

The results of operations of Eureka are included in our consolidated statements of operations from the acquisition date and were not material. Pro forma results of operations are not presented as they are not material to the consolidated statement of operations.

In general and administrative expense, we recognized $0.7 million, $0.9 million, and $0.1 million of acquisition-related transaction costs in the three months ended June 30, 2024 and the six months ended June 30, 2024 and 2023, respectively.

Goodwill and Acquired Intangible Assets

The changes in the carrying amount of goodwill are as follows:

The excess purchase consideration over the fair value of acquired assets and liabilities is recorded as goodwill. The acquired goodwill reflects the synergies we expect from marketing and selling new capabilities from Eureka to our customers. The acquired goodwill is generally not tax deductible.

Acquired intangible assets subject to amortization are as follows:

Amortization of acquired intangible assets was $4.8 million, $3.1 million, $9.4 million and $6.2 million in the three months ended June 30, 2024 and 2023, and the six months ended June 30, 2024 and 2023, respectively. At June 30, 2024, our acquired intangible assets are expected to be amortized over an estimated remaining weighted average period of 5.7 years.

At June 30, 2024, estimated future amortization of acquired intangible assets is as follows: