Atlassian Corporation, a provider of team collaboration and productivity software based in Australia, will acquire video messaging platform Loom for approximately $975 million to supercharge team collaboration.

Atlassian said in a statement on last Thursday that the firm has entered into a definitive agreement to acquire the video messaging platform that has amassed more than 25 million users.

The total consideration will be comprised of approximately $880 million in cash, and the remainder in Atlassian equity awards.

According to Atlassian, the global movement towards distributed work has fuelled a need for new ways to help teams collaborate when they are not in the same location or even the same hemisphere.

It said that asynchronous (async) video has been at the forefront of this movement with Loom’s business users recording almost 5 million videos per month.

“Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways,” said Mike Cannon-Brookes, Co-Founder and Co-Chief Executive Officer of Atlassian.

It is noted that Atlassian has deep expertise in how teams work. It’s already the go-to place for over 260,000 customers who plan, track and get work done, and the addition of Loom will further elevate the collaboration experience for teams.

It is also noted that soon, engineers will be able to visually log issues in Jira; leaders can use videos to connect with employees at scale; sales teams can send tailored video updates to clients and human resource (HR) teams can onboard new employees with personalized welcome videos.

Furthermore, by integrating Atlassian’s and Loom’s investments in artificial intelligence (AI), customers will be able to seamlessly transition between video, video transcripts, summaries, documents, and the workflows developed from them, providing multiple ways for teams to connect and collaborate.

For Loom customers, the acquisition will bring the benefit of Atlassian’s platform and portfolio of products, allowing users to plug async video directly into key workflows
in Jira and systems of record in Confluence.

“Loom’s vision is to empower everyone at work to communicate more effectively wherever they are, and by joining Atlassian, we can accelerate their mission to unleash the potential of every team,

”We’re excited to weave video into collaboration in a way that only Loom + Atlassian can,” said Joe Thomas, Co-Founder and Chief Executive Officer of Loom.

Atlassian expects to fund the cash consideration through existing cash balances.
The transaction is expected to close in the third quarter of Atlassian’s fiscal year 2024.

The acquisition is expected to be slightly dilutive to the firm’s non-generally accepted accounting principles (GAAP) operating margins in fiscal years 2024 and 2025.
Founded in 2016, Loom is a video messaging platform that helps users communicate through instantly shareable videos.

Known for their ease of use, users simultaneously record their desktop screen, camera, and microphone creating rich documentation of institutional knowledge.

With transcripts in 50+ languages and AI features that write titles, summaries, chapters, and tasks, Loom currently serves over 200,000 customers.

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