During the fiscal year ended January 31, 2025, the Company acquired the BenefitWallet HSA portfolio from Conduent Business Services, LLC ("Conduent"). The transfer closed in a series of three tranches, as follows:


	Transfers to HealthEquity			Applicable purchase price
(in thousands, except HSA Assets)	HSAs	HSA Assets (in millions)		Paid using cash on hand		Paid using borrowings under the Prior Revolving Credit Facility		Total purchase price
March 7, 2024	266	$	1,071	$	163,974	$	—	$	163,974
April 11, 2024	134	555		34,925		50,000		84,925
May 9, 2024	216	1,047		1,101		175,000		176,101
Total	616	$	2,673	$	200,000	$	225,000	$	425,000

The acquisition was accounted for as an asset acquisition, and related acquisition costs were capitalized as part of the cost of the asset, which is included within intangible assets, net, on the Company's consolidated balance sheet. The Company capitalized $27.2 million of transaction costs associated with the acquisition during the fiscal year ended January 31, 2025, which includes the reimbursement of $20.0 million of Conduent's transfer-related expenses. In addition, in May 2024, the Company assumed a contract with a depository partner representing approximately 7% of the total HSA Assets added through the acquisition, which provides a custodial yield that is below current market rates and expires in June 2026. The Company recorded deferred revenue of $20.3 million in May 2024 as a result of the assumed contract, which will be recorded as an increase to custodial revenue over the life of the assumed contract.

The gross carrying amount and associated accumulated amortization of intangible assets were as follows:


	January 31, 2025
(in thousands)	Gross carrying amount		Accumulated amortization		Net carrying amount
Amortizable intangible assets:
Software and software development costs	$	312,234	$	(234,102)	$	78,132
Acquired HSA portfolios	737,011		(124,606)		612,405
Acquired customer relationships	759,782		(256,820)		502,962
Acquired developed technology	132,825		(121,666)		11,159
Acquired trade names	12,900		(12,900)		—
Total amortizable intangible assets	$	1,954,752	$	(750,094)	$	1,204,658


	January 31, 2024
(in thousands)	Gross carrying amount		Accumulated amortization		Net carrying amount
Amortizable intangible assets:
Software and software development costs	$	267,498	$	(197,388)	$	70,110
Acquired HSA portfolios	264,445		(81,059)		183,386
Acquired customer relationships	759,782		(205,127)		554,655
Acquired developed technology	132,825		(105,049)		27,776
Acquired trade names	12,900		(12,879)		21
Total amortizable intangible assets	$	1,437,450	$	(601,502)	$	835,948

During the fiscal years ended January 31, 2025 and 2024, the Company capitalized $472.6 million and $3.3 million, respectively, to acquire the rights to act as a custodian of HSA portfolios.

Amortization expense for the fiscal years ended January 31, 2025, 2024, and 2023 was $157.8 million, $144.3 million and $148.9 million, respectively. Estimated amortization expense for the fiscal years ending January 31 is as follows:


Year ending January 31, (in thousands)
2026	$	146,511
2027	129,812
2028	111,644
2029	98,155
2030	97,130
Thereafter	621,406
Total	$	1,204,658

The Company’s annual goodwill impairment test resulted in no impairment charges in any of the periods presented in the accompanying consolidated financial statements. There were no changes to the carrying value of goodwill during the fiscal years ended January 31, 2025 or 2024.